The government has named and shamed 70 employers who have failed to pay their workers the National Minimum Wage.
The list of employers was released by Business Minister Jo Swinson on Tuesday (24 February 2015) and includes five businesses based in Nottingham.
Between the 70 named businesses, employees were owed a total of over £157,000 in arrears and have been charged financial penalties equalling over £70,000.
The government has already named 92 employers since the new naming regime came into force in October 2013 and this latest list brings the total of shamed businesses to 162.
Nottingham businesses named and shamed
East Midlands Crossroads – Caring for Carers neglected to pay £37,592.56 to 184 workers
KRCS (Digital Solutions) Ltd neglected to pay £5,161.85 to 5 workers
Leisure Emporium Ltd trading as Brown’s Cafe Bar & Bistro neglected to pay £643.86 to a worker
D&D Dies Ltd neglected to pay £446.37 to a worker
Mr G J Pearce trading as Sheppards Wood Service Station neglected to pay £268.56 to a worker
In a push to crack down on minimum wage offenders, the government will be increasing HM Revenue and Customs’ £9.2 million enforcement budget by an extra £3 million – funding more than 70 compliance officers.
“Completely unacceptable”
Business Minister Jo Swinson has condemned any employers who ignore the minimum wage rules – branding it “illegal, immoral and completely unacceptable.”
She added: “Naming and shaming gives a clear warning to employers who ignore the rules, that they will face reputational consequences as well as financial penalties of up to £20,000 if they don’t pay the minimum wage.
“We’re working hard in areas where we know there are particular problems, like the care sector, to make sure staff are paid fairly for the hard work they do.”
What are the national minimum wage rates?
Employers have a duty to be aware of the different rates for the minimum wage.
The current rates start at £2.73 per hour for an apprenticeship and go up to £6.50 per hour for adults aged 21 and over.
Ms Swinson also explained that by legislating through the Small Business, Enterprise and Employment Bill, penalties can be applied to each underpaid worker rather than per employer.
Video: National Minimum Wage advice for employers and employees
Care sector
The government is also investigating around 100 care sector cases and three employers have been shamed for failing to comply with the minimum wage.
Norman Lamb, Care and Support Minister, wants a fairer society, where everyone receives the care support they deserve.
He added: “There is absolutely no excuse for employers that fail to pay the minimum wage.
“We know the 100 care companies being investigated are just the tip of the iceberg in the care sector and are absolutely committed to getting back the wages people have worked so hard for.
We will continue to name, shame and fine these employers until every care provider gets the message.
HMRC is working to understand more about the non-compliance with the national minimum wage within the care sector.
It is also hoping to raise awareness with both employers and workers – making sure that people know how to complain if they are not receiving the national minimum wage.
East Midlands Crossroads Care, located in Sherwood, is a national network of local charities that works with carers to help them make a life outside of caring.
The organisation was Nottingham’s biggest culprits of non-compliance, owing £37,592.56 to 184 workers.
A spokesperson for East Midlands Crossroads said: “Over the last few months we have been working closely with HMRC to establish our compliance with the National Minimum Wage regulations.
“The legislation is complex, in parts ambiguous, and open to interpretation.
According to Crossroads, the organisation was unaware of its non-compliance and has worked in tandem with HRMC to pay back their workforce and ensure compliance with the legislation now and in the future.
The spokesperson added: “We were pleased to be able to work with the HMRC and are happy that we have been able to fully address this issue, with all back pay having been paid in September 2014.”
KRCS Ltd was another business named and shamed by the government – owing £5,161.85 to workers.
Embarrassing
Sales director, Robert Woods, found the incident embarrassing, but claims it was entirely accidental on their behalf.
He said: “We have retail stores in the Victoria Centre and six other towns and were asking staff to get ready for work by 9.15 as the shops open at 9.30.
“When the government inspector came along he said we needed to pay them from 9.15 and that meant that a few staff fell below the minimum wage due to that extra 15 minutes per day.”
Mr Woods suggested that the government should be looking to reprimand businesses who intentionally neglect employees.
He added: “I think the people that need to be shamed are the ones intentionally under-paying people. We are not – it was just a misinterpretation.”
