Firms fined for under paying staff

The Department for Business, Innovation and Skills have published a list of 37 companies who have failed to pay their staff the national minimum wage. All types of companies have been exposed, from large high street brands to SME’s.

The underpayment of staff is thought to be around £177,000. Business Minister, Joe Business Minister, Jo Swinson, condemned the companies, “paying less than the minimum wage is illegal, immoral and completely unacceptable. If employers break this law they need to know that we will take tough action by naming, shaming and fining them as well as helping workers recover the hundreds of thousands of pounds in pay owed to them.”

While TUC general secretary Frances O’Grady feels that this is just the “tip of the iceberg” and that to stop companies underpaying staff needs to be stopped and has suggested large fines and prosecutions should be used as a deterrent.

But what are the consequences for these businesses?

Each company will be fined £51,000, however the real cost to their business will be in the shape of negative PR. Their company image will have taken a hit and it could take time to re-build their reputation.