Companies fail to pay minimum wage

25 February 2015

More companies around the UK have been exposed by the government for failing to pay their employees the national minimum wage. The total number of companies named and shamed since October 2013 has now reached 162. To support the continued crackdown, the government have increased the enforcement budget by £3 million to employ more compliance officers.

The care sector is under the most scrutiny, with a further 100 care providers being investigated. The government has called this “the tip of the iceberg.”

The Care and Support Minister Norman Lamb has come out and condemned those not paying the minimum wage. “We want a fairer society where everyone gets the care they deserve – to do this we need a skilled, valued and fairly paid workforce. There is absolutely no excuse for employers that fail to pay the minimum wage.”

Business Minister Jo Swinson has said that paying less than the minimum wage was “illegal, immoral and completely unacceptable.”

What punishments will these companies face?

The companies found to be not paying their staff the minimum wage will face financial penalties of up to £20,000, while their reputation will be considerably damaged.

However, TUC General secretary Frances O’Grady feels that these punishments do not go far enough, and has called for higher fines and prosecutions.

“Cheating bosses who fleece their workers out of their hard earned pay must end up in court – and there are still lots of under-paying employers who are getting away with it.”

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