27 March 2015
The Government’s department for Business Innovation and Skills has named 48 UK companies who have not complied with minimum wage legislation when paying their staff.
This is in addition to companies already highlighted by the BIS department in recent months, bringing the total number of businesses underpaying staff to 210, owing pay in arrears of more than £635k, before penalties. Those listed include Care Homes, Day Nurseries and Hair Salons.
Andrea O’Hare, our head of HR and employment law services has said:
“Not only is this a huge PR blow for those companies who have been publicly named and shamed in the report but it will damage their reputations in terms of being desirable companies to work for, thus potentially reducing their chances of recruiting talented people in the future.
Companies must adhere with employment law, which includes ensuring pay regulation compliance for all staff, whether they are apprentices, part time or full time employees. By not doing so, they are not only breaking the law and face a significant fine but they will also run the risk of demotivating existing employees and generating adverse publicity for their business.
The guidelines around employee pay can be complicated but with so much advice available to companies, there is no excuse for non -compliance. If UK companies are unsure they need to ask for guidance.”
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