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Workers to Receive Back Pay for Minimum Wage - What Lessons Can Businesses Learn?

on Friday, 22 December 2017.

A recent announcement by the Department for Business, Energy and Industrial Strategy (BEIS) has named 260 employers who have been failing to pay at least minimum wage rates to their workers.

As part of the government's plan to name and shame those who do not pay the national minimum wage, BEIS has released the names of 260 employers who will need to back pay 16,000 workers. In the largest naming round to date, £1.7 million was identified in back pay for these workers which also resulted in the employers being fined a total of £1.3 million in relation to underpayment.

Businesses found to be the most frequent offenders include those in the retail, hairdressing and hospitality industries.

Best Practice

The government has made it clear that it is taking a tough approach towards businesses that do not pay at least the national minimum wage. This is only the latest in the naming and shaming scheme, which has seen 1,500 employers fined since 2013.

Employers should make themselves aware of the ways in which businesses do regularly go wrong in respect of the national minimum wage. Common errors which have been highlighted include failing to pay workers who travel between jobs as well as deducting money from pay for uniforms and not paying in respect of overtime.

Businesses should focus on compliance and if they are unsure of the national minimum wage legislation then it may be useful to seek legal advice.


For more information please contact Nick Murrell in the Employment Law team on 0117 314 5627.

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