Minimum wage rogues to be ‘named and shamed’

Law changes will make identifying employers who fail to pay easier

Employers who do not pay the minimum wage will be ‘named and shamed’ under beefed up government rules intended to deter flagrant abuses of the law.

The government has revised rules around the National Minimum Wage (NMW) to make it easier to name employers who fail to pay workers properly.

Announcing the changes, due to come into force this October, Employment Relations Minister Jo Swinson said that the fear of reputational damage from being named in this way would act as an additional deterrent for rogue employers on top of existing fines.

Under current rules, the minimum amount of NMW owed to workers had to be at least £2,000 and the average per worker at least £500 before an employer could be named.

And so far, only one employer, a hairdresser from Leicester, has been outed for failing to pay it.

But the revised scheme will strip back restrictions so that any employer who breaks minimum wage law can be named.

In 2012/13, HM Revenue and Customs found that 26,500 employees had not been paid the minimum wage they were entitled to, prompting the recovery of £3.9 million in unpaid earnings from employers.

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.

“This is why I’m making changes so it is easier to name and shame employers who break the law. This gives a clear warning to rogue employers who ignore the rules, that they will face reputational consequences as well as a fine if they don’t pay the minimum wage.”

Charles Cotton, reward advisor at the CIPD, said: “If the UK is going to compete successfully in the global economy then we need to pay and train our employees properly. The National Minimum Wage is one way of helping to drive up the quality of work in our workforce and our workplaces, but it is in danger of being undermined by the short-sightedness of a few rogue employers.