Is Your Employer Paying you the Correct National Minimum Wage?
In July 2018, the government stopped ‘naming and shaming’ businesses who failed to pay their employees the correct national minimum wage. However, from April 2020, this declaration will start again and the names of the offending businesses will be published more frequently than before.
The publication process will be restricted to those business who owe their employees £500 or more. Businesses which make small mistakes resulting in less than £500 being owed will not be named. Yet, the companies will still have to make amends with their employees and pay them what they are owed. If the companies fail to do so, they may face government fines.
Hilary Hall, NHBF chief executive said, “It’s completely right that stylists, barbers and therapists should be properly paid for the valuable work they do. It’s shameful that hairdressing was named as one of the three sectors most likely to get financial calculations wrong, alongside retail and hospitality. Particularly for people who work part-time and varying hours, the calculations can be complicated and even an unintentional error can lead to a worker being underpaid. This is why the NHBF provides free advice to members about receiving their payments right. We also welcome the government’s commitment to simplify the national minimum wage regulations, which should make it easier for small businesses to get wages right.”
She continues: “We question why salons who genuinely try to do the right thing by their workers, yet who make small mistakes are so heavily penalised, when larger businesses who break regulations seem to get away with it. We continue to call on the enforcement authorities to do more to tackle crooked businesses working in the economy, who fail to pay the correct wages, tax or VAT.”