Employers are to be named and shamed if they deliberately flout minimum wage laws.
Starting from 1st January next year, the Department for Business, Innovation and Skills (BIS) will publicise cases involving employers who break the rules. The rogue firms will then be given three months to “put their house in order” before further action is taken.
Announcing the new sanction, Employment Relations Minister Edward Davey, said: “Bad publicity can be a powerful weapon in the fight against employers who try to cheat their workers and their competitors. Their reputation can be badly damaged if they are seen to be flouting the law.”
Meanwhile, the new National Minimum Wage rates have now come into effect.
The adult rate rises from £5.80 per hour to £5.93. Employers should also note that the adult rate now comes into effect at 21 instead of 22 as before.
The rate for the 18-20 age group rises from £4.83 per hour to £4.92 and the rate for 16-17-year-olds increases from £3.57 to £3.64.
There is also now an apprentice minimum wage of £2.50 per hour. This applies to apprentices who are under 19 or to those who are over 19 but in the first year of their apprenticeship.
All other apprentices are entitled to the standard rate for their age group.
Please contact Yunus Lunat of our Employment Department if you would like more information.
