On 6th April 2020, the government will resume its policy of naming and shaming businesses that fail to pay the correct national minimum wage (NMW.)

This policy first came into place in October 2010 where the government publicly named and shamed businesses that breached the minimum wage laws, the purpose being to ensure NMW compliance was met, but this was suspended pending a formal review. From 6th April 2020, it has been confirmed this will resume.

Penalties:

Under the original scheme the NMW arrears were £100 and you could find your business named on the public register, when this comes back into force the arrears threshold will be raised to £500 fine across your entire workforce, not only NMW arrears per employee. An honest mistake won’t stop you from still being named and shamed publicly. However, this will only happen if the NMW arrears exceed £500 across your workforce and any minor errors that are rectified immediately will be ignored.

 

Advice:

You can avoid getting caught out by ensuring that you pay your Apprentice staff the appropriate NMW rate for their age. Ensure action is taken to check all rate changes immediately as a delay could be costly.

To find out the new rates from April 2020 for the National Minimum, Living and Apprenticeship Wage...