£2 million Back Pay for Underpaid Workers

Following a recent Government investigation, 233 employers have been ‘named and shamed’ for failure to pay the National Minimum Wage or National Living Wage; with the worst offenders being from the hairdressing, hospitality and retail industries.

The result of this investigation is that circa £2 million will now be paid to around 13,000 employees in compensation.

The investigation was as a result of a Government crackdown on failure to pay minimum wage.

The Office for National Statistics believes the problem is much more deep-routed however and has calculated that 362,000 jobs did not pay the National Minimum Wage in April 2016.

Common Errors

Common errors which see employers failing to meeting National Minimum Wage and National Living Wage requirements are:

• Deducting uniform costs from an employee’s wages;

• Failing to pay overtime;

• Paying apprentice rates to those who are not genuine apprentices.

The fining of employers is gradually increasing and, since 2013, over 1,200 employers have been issued with fines by the Government equating to over £4 million; with over £6 million being ordered in compensation.

It is also thought that, by naming those employers who have failed to meet the minimum wage requirements; this will act as a deterrent to all employers going forwards.

We Can Help

Here at Chadwick Lawrence we have seen an increase in HMRC investigations at our corporate clients and it is important to ensure that the National Minimum Wage and Living Wage obligations are met.

If you require further advice regarding the National Minimum/Living Wage or HMRC investigations, please do not hesitate to contact our Regulatory Team on 0800 015 0340.