On 21 June 2023, the Government named over 200 employers who have failed to pay some of their lowest paid staff the minimum wage in an investigation between 2017 and 2019. The total amount they have failed to pay amounts to around five million pounds and it is said that this has since been paid back by the companies. There were a number of ways in which the employers failed to pay their staff the minimum wages, for example:
- 39% of employers deducted pay from workers’ wages.
- 39% of employers failed to pay workers correctly for their working time.
- 21% of employers paid the incorrect apprenticeship rate.
Amongst the 200 employers named, are household names such as WH Smith, Lloyds Pharmacy and Marks and Spencer, though it was not just large companies failing to pay the minimum wage with smaller companies also being named on the list. These companies also faced financial penalties for failing to pay the minimum wage. The full list has been published at the following link More than 200 companies named for not paying staff minimum wage – GOV.UK (www.gov.uk).
It is thought that this naming and shaming exercise will encourage companies to pay their staff correctly and also raise awareness to staff members who are being underpaid.
If you are concerned about whether your company is paying its employees correctly, please contact us on [email protected] to arrange an appointment to discuss these with our team.
For advice on how this may impact your business and what you may need to do going forward, please get in touch with one of our specialist team today.
Swan Craig Solicitors are a locally trusted and thoroughly regulated law firm, housing qualified solicitors and experienced legal professionals well-versed in UK employment law. With the knowledge, training and expertise to advise you on issues with your employer or working environment, we are authorised and insured to give you legal guidance. With over 18 years of experience, our dedicated team are available at your convenience, so simply contact us today, on everything from disciplinaries to changes in contract.
