News: Businesses paying less than minimum wage to be named and shamed

startup costsNew government rules will come into effect in October which will name and shame businesses which fail to pay their employees the national minimum wage (NMW).

Although these businesses had previously been subject to fines, they were not publicly named unless they owed an average of £500 per worker and met several criteria. The revised scheme will aim to warn businesses that hey are breaking the law by not paying their workers NMW.

In 2012/2013 HMRC recovered £3.9 million in unpaid wages for over 26,500 workers employed by 736 companies.

Employment Relations Minister Jo Swinson said “Paying less than the minimum wage is illegal. If employers break this law they need to know that we will take tough action.”

Starting from 1st October, the standard hourly minimum wage for workers aged 21 and over will be £6.31. Those aged 18 to 20 will be entitled to £5.03 per hour and under 18s should earn £3.72.

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Kasey writes about the latest small business and website news for bOnline. Find Kasey on Google+, or follow bOnline on Facebook, Twitter, LinkedIn and Google+

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