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UK govt names and shames employers for paying less than minimum wage

191 named companies failed to pay £2.1 million to over 34,000 workers

August 05, 2021
UK govt
UK govt

Saudi Gazette report

LONDON —
The government in the United Kingdom on Thursday named and shamed 191 businesses for breaking the national minimum wage law.

Following investigations by the country's Revenue and Customs, a total of £2.1 million (nearly $2.9 million) was found to be owed to over 34,000 workers, the UK government said in a press statement.

The breaches took place between 2011 and 2018. Named employers have since been made to pay back what they owed, and were fined an additional £3.2 million, showing it is never acceptable to underpay workers, according to the statement.

The UK government recently gave millions a pay rise, by increasing National Living Wage and National Minimum Wage rates in April 2021. The rise means someone working full time on the National Living Wage will be taking home £5,400 more annually than they were in 2010. Every single UK worker is entitled to the National Minimum Wage, no matter their age or profession.

The employers named today previously underpaid workers in the following ways:

— 47 percent wrongly deducted pay from workers’ wages, including for uniform and expenses

— 30 percent failed to pay workers for all the time they had worked, such as when they worked overtime

— 19 percent paid the incorrect apprenticeship rate

Commenting on the move, British Business Minister Paul Scully said: "Our minimum wage laws are there to ensure a fair day’s work gets a fair day’s pay — it is unacceptable for any company to come up short."

"All employers, including those on this list, need to pay workers properly."

"This government will continue to protect workers’ rights vigilantly, and employers that short-change workers won’t get off lightly," Scully added.

Employers who pay workers less than the minimum wage have to pay back arrears of wages to the worker at current minimum wage rates. They also face hefty financial penalties of up to 200 percent of arrears — capped at £20,000 per worker — which are paid to the government. Since 2015 the government has ordered employers to repay over £100 million to 1 million workers.

A significant number of the minimum wage breaches identified today affected those on apprenticeships. Today the government has published new guidance to ensure employers know exactly what they need to do to pay their apprentices, and all workers, correctly.


August 05, 2021
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