The government has named 70 companies that have failed to pay workers the minimum wage. The worst offender being the care provider ‘East Midlands Crossroads’ which owed £37,500 to 184 workers. An estimated 100 cases in the care sector are being investigated. Since the new regime came into place in 2013, some 160 firms have been named. All firms named face financial penalties as well as suffering damage to their reputation.
Legislation is being planned so that the fines can be applied to each underpaid worker rather than per employer. Business Minister Jo Swinson stated “We are helping workers recover the hundreds of thousands of pounds in pay owed to them as well as raising awareness to make sure workers are paid fairly in the first place.”
The news of businesses underpaying their workers comes a day after the low pay commission recommend a 3% rise in the adult minimum wage from £6.50 an hour to £6.70 an hour. This would increase the rate for 8-20 year olds from £5.13 an hour to £5.30 an hour, 16 to 17 year olds would see an increase from £3.79 an hour to £3.87 an hour. Apprentices would also see an increase from £2.73 an hour to £2.80. A decision to increase the minimum wage to these rates will be made in the coming weeks and the rates would come into place from October.
If you would like to discuss your payroll matters do not hesitate to contact us on 0113 2864486
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