Businesses who fail to pay workers the legal minimum wage will continue to be “named and shamed”, it has been announced.
In a new report, HM Revenue & Customs (HMRC) warned employers that the naming scheme will resume to call out businesses failing to comply with Living and National Minimum Wage rules.
It follows a review into the “naming and shaming” scheme which sees employers names posted online for all to see, as well as the value of wages underpaid and fines. According to the review’s recommendations, “naming rounds” should occur more often to enhance the effectiveness of the measure as a deterrent.
The threshold for “naming and shaming”, however, has been increased from £100 to £500. HMRC said this will give employers falling foul of the rules by minimal sums time and space to correct their ways.
Despite the increased threshold, any amount of underpayment will still attract fines of up to 200 per cent of arrears.
Commenting on the review, Business Minister Kelly Tolhurst said: “Anyone who is entitled to the minimum wage should receive it – no ifs, no buts – and we’re cracking down on companies that underpay their workers.
“We also want to make it as easy as possible for employers, especially small businesses and those trying to do right by their staff, to comply with the NMW rules, which is why we’re reforming regulations.”
Last year, employers including restaurant chain Wagamama, Marriot Hotels and TGI Friday’s were publicly “named and shamed” for paying workers less than the legal minimum wage.
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