Government's 'Naming and Shaming' list highlights over 500 companies for Minimum Wage Breaches
Richard Maitland · February 21st 2024 · read
The Department for Business and Trade has once again brought minimum wage non-compliance into the spotlight with its latest so-called 'naming and shaming' list. Over 500 employers have been highlighted for failing to pay their workers the minimum wage, totalling nearly £16 million in unpaid wages affecting over 172,000 workers.
The Department’s statement recognises that not all minimum wage underpayments are intentional, and typically it is strict technical breaches of the rules which prove to be stumbling blocks for otherwise compliant employers. These breaches can arise from areas including the operation of staff uniform policies and deductions for items which benefit the employee, such as childcare. Even if unintentional, these breaches can still result in arrears for workers and also attract unwanted headlines.
The significance of this issue is underscored by the upcoming increase in the highest minimum wage rate, the National Living Wage, to £11.44 per hour (up from £10.42), set to take effect on April 1st. With wage regulations becoming increasingly stringent, it is imperative for businesses to ensure compliance to avoid facing penalties and reputational damage.
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MHA can support businesses with these challenging compliance issues, including navigating the intricacies of minimum wage regulations and implementing robust policies to prevent non-compliance.
The publication of the latest 'naming and shaming' list underscores the government's high-profile approach to minimum wage compliance, so do get in touch if you’d like to discuss.
