Employers beware trimming the wage bill
A hair and beauty salon in Leicester was recently named and shamed for failing to pay workers the national minimum wage. Its owner was publicly referred to HMRC to sue for enforcement of the pay shortfall on behalf of a number of employees. Action was taken by Norman Lamb, the government’s Minister for Employment Relations, as part of an initiative originally introduced by the BIS department last January aimed at enforcing employee pay rights.
This action highlights a harder line which the government has announced it will take where employers fail to pay employees the legal rate, which is set to increase to £6.19 for workers age 21 and over as of next month. Apprentice rates will also increase. Employers can expect similar high profile criticism if they fail to keep adequate pay records or hinder NMW compliance officers in their investigations.