In a significant move by the UK government, 524 businesses have been publicly named and shamed for failing to pay their workers the National Minimum Wage (NMW). This action underscores the government’s commitment to enforcing fair pay and comes ahead of a substantial increase in the National Living Wage.
Key Points:
- 524 businesses named for underpaying nearly £16 million to workers.
- Over 172,000 workers affected by the underpayment.
- The announcement aligns with the upcoming 9.8% increase in the National Living Wage to £11.44 per hour starting April 1, 2024.
Government’s Stance: The government has taken a firm stance against underpayment, ensuring that all workers receive what they are legally owed. Minister Kevin Hollinrake emphasized that while most businesses comply with wage laws, those that don’t will face consequences. The government’s approach is not only punitive but also educational, aiming to prevent future underpayments through increased awareness and guidance.
Impact on Workers and Businesses: The underpayment of wages not only affects the livelihood of workers but also distorts fair competition among businesses. By naming the offenders, the government aims to deter non-compliance and promote a level playing field for all businesses.
Looking Forward: As the cost of living continues to rise, the government’s enforcement of wage laws is more crucial than ever.
A list of the shamed companies can be found here.
Not being paid the minimum wage?
If you suspect that you’re not being paid the National Minimum Wage (NMW) in the United Kingdom, there are steps you can take to address the issue:
- Informal Resolution:
- Talk to Your Employer: Initiate an informal conversation with your employer. Discuss your concerns about not receiving the correct minimum wage. You can:
- Use the National Minimum Wage and Living Wage calculator on the GOV.UK website.
- Review your payslips and employment contract to verify your pay.
- Raise a Grievance: If informal discussions don’t resolve the problem, consider raising a formal complaint (grievance) with your employer. This can help resolve the issue without legal action.
- Talk to Your Employer: Initiate an informal conversation with your employer. Discuss your concerns about not receiving the correct minimum wage. You can:
- Formal Processes:
- Complain to HM Revenue and Customs (HMRC):
- You can make a complaint to HMRC if you believe your employer is not paying the correct minimum wage. Complaints can be anonymous, and third parties (such as friends, family members, or coworkers) can also report non-compliance.
- HMRC can take various actions against the employer, including issuing notices to pay backdated amounts, imposing fines, and even pursuing legal proceedings.
- To make a complaint to HMRC, use the pay and work rights complaints form on GOV.UK.
- Employment Tribunal Claim:
- Alternatively, you can make a claim to an employment tribunal. Choose either this route or the HMRC complaint; you cannot pursue both simultaneously.
- The amount you can claim depends on the type of claim. For non-payment of minimum wage, you can claim for money owed going back up to 2 years.
- Remember that there are strict time limits for making a claim to an employment tribunal:
- If there was a single incorrect deduction, you have 3 months minus 1 day from that deduction.
- If there were several consecutive incorrect deductions, you have 3 months minus 1 day from the most recent one.
- Complain to HM Revenue and Customs (HMRC):
- Seek Advice:
- If you have questions or need assistance, contact the Acas helpline for free and confidential advice or contact Solidarity if you are a member.
- Additionally, you can explore resources such as the Check Your Pay campaign for further guidance.
Remember that you have rights, and employers must comply with NMW regulations. Reporting non-compliance helps ensure fair treatment for all workers
