The government has named and shamed a further 179 employers for underpaying their workers the national minimum wage (NMW) or national living wage (NLW).  The government’s 14th “naming and shaming” list covers more than 9,000 UK workers, and means they will
now collectively receive £1.1 million in back pay.

As well as recovering the back pay for these workers, the government has also fined the relevant employers a total of £1.3 million in penalties for breaking minimum wage laws. Employers who pay less than the NMW/NLW not only have to pay back arrears of wages
to the worker at current NMW/NLW rates but also face financial penalties of up to 200% of the arrears, capped at £20,000 per worker.

The latest list comes ahead of the annual NMW and NLW rate rises on 1 April 2018, when the NLW for those aged 25 and over will increase to £7.83 per hour.

Since 2013, the naming and shaming scheme has identified more than £9 million in back pay for around 67,000 workers, with more than 1,700 employers fined a total of £6.3 million.

The Low Pay Commission (LPC) is currently seeking evidence on the effects of the recent increases in the NMW and NLW, to inform its thinking about the next annual upratings to take effect from 1 April 2019.  This year’s consultation contains extra questions
to help the LPC with two additional strands of work. Firstly, it will be considering the potential impact of a premium, i.e. a higher NMW/NLW rate, for those hours that are not “guaranteed”. Secondly, it is conducting a review of the minimum wage structure,
including a review of the youth rates of the NMW in light of changes over time in young peoples’ participation in work and education and a review of the apprentice rate of the NMW in light of significant policy changes to apprenticeships in England. The consultation
will close on 1 June 2018 and then the LPC will make its recommendations to the government in October 2018.

Source: New feed