At the end of last year the Government named and shamed 260 employers who had underpaid the National Minimum Wage and National Living Wage. Having fined those employers a total of £1.3 million and identified £1.7 million which was owed in back pay to 16,000 workers, it remains as important as ever to ensure staff are paid the correct amount. This is brought into sharp focus by the announcement that the National Minimum Wage rates are set to increase.
From 01 April 2018 the rates are as follows:
The Government’s naming and shaming exercise shows that employers engaged in hairdressing, retail and hospitality were particularly poor when it came to underpaying staff. The table above makes it look simple but as ever the problems come when employers apply it to the workplace. Common mistakes for employers include not paying for overtime, deducting money for uniforms and neglecting to pay workers for travelling between jobs. With big names like Primark and SportsDirect.com on the list, it is clear even employers with vast HR resources can make mistakes. Applying the National Minimum Wage can be more complicated than it looks and employers should not hesitate to take expert legal advice at an early stage.
For more information about the National Minimum Wage or to speak to an Employment Solicitor please call us on 01924 387 110 or [request a callback].