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Further 25 employers named and shamed over low pay

Posted: 9th July 2014   In: Business Employment

A further 25 employers have been named and shamed for failing to pay the minimum wage. It’s the latest move in the government crackdown on rogue businesses who fail to treat their staff correctly.

The measures were introduced in October last year and several firms have already been named and shamed. In June, the government named 25 more employers from a variety of industries such as hairdressing, hospitality, nurseries and retail.

As well as being named and shamed, employers could also face fines of up to £20,000.

The government plans to increase the punishment further so that employers would face fines of up to £20,000 for each employee they underpay rather than as a total for all employees.

The 25 employers who have been named and shamed were investigated by HM Revenue and Customs following complaints from workers.

Business Minister Jenny Willott said: “Paying less than the minimum wage is not only wrong, it’s illegal. If employers break the law they need to know that they will face tough consequences.”

The minimum wage is set to increase in October 2014. The rate for adults will increase from £6.31 to £6.50 per hour.

Other rates: 18-20 year olds wages are to rise from £5.03 to £5.13 per hour, 16-17 year olds will rise from £3.72 to £3.79 per hour and apprentice wages will raise from £2.68 to £2.73 per hour.

Please contact John Carter if you would like more information about the issues raised in this article or any aspect of employment law.