It was announced
back in March that the minimum wage would again be increased from October 2014
and with this in mind we came across an interesting article by Rob Moss from
‘Personnel Today’, that we thought we would share with you.
The national minimum wage is 15
years old this week, and to coincide HM Revenue & Customs (HMRC) has
revealed what it believes are the 10 worst excuses given by employers in the
past year for paying below the threshold.
One
employer claimed that a worker was his wife, but then had to ask her name.
Another claimed that their employees did not speak English, so were not
entitled to the minimum wage. Others simply denied that the employee worked
there at all.
The
national minimum wage sets minimum hourly rates that employers must pay their
workers. The main rate increases to £6.50 per hour in October 2014.
Jennie
Granger, HMRC’s director general of enforcement and compliance, said: “Most
employers are honest and pay their staff the correct rate. But this research
shows that some still view the national minimum wage as a choice, and will even
try these crazy excuses to avoid paying workers what they are due.”
Top 10 worst excuses
1.
An employer said a woman was not entitled to the minimum wage because she was
his wife. When asked what his wife’s name was, the employer said: “Err, her
name? What’s your name, love?”
2.
“My employees don’t speak English, so they’re not entitled to it,” was another
reason.
3.
An employee ran out of the premises when HMRC officers arrived to check for
national minimum wage infringements. The same employee then returned – minus
the work pinafore – with the employer claiming that they were a customer.
4.
One employer told HMRC: “When the national minimum wage goes up I do increase
the amount I pay a little, even if the total pay is still below the national
minimum wage. I don’t think it’s right to ignore rises in the national minimum
wage.”
5.
Upon inspection, an employer told HMRC: “I know I am paying them too little,
but they are happy to work for this amount because they are getting
experience.”
6.
An employer said his employee was just working for a few days, with a view to
buying the business. When HMRC checked, the employee’s name was found on
historic food temperature records.
7.
An employer claimed they realised they were not paying employees the national
minimum wage and had just this week increased their income to a new hourly rate
– which was still below the minimum wage.
8.
An employer told HMRC: “It wasn’t a conscious decision to say ‘I’m not going to
pay this’, but I’ve never really considered doing it because I’ve not had
people come to me and say, ‘I’m not getting paid enough’ or ‘Is this the
minimum wage?’”
9.
Another employer claimed an employee was just a friend, and only in the
restaurant as they were in the area. HMRC officers returned another day to find
the employee in the kitchen preparing food.
10.
A number of employers claimed that accommodation they provided workers made up
for their shortfall in wages.
HMRC
said its investigations last year resulted in more than 26,000 people getting a
share of £4 million in back pay.
Rob
Moss, 3rd April 2014
Tamar HR’s View
Although this is a
light hearted look at this issue, HMRC do take compliance very seriously and
the penalties for employers who breach National Minimum Wage can reach up £20,000
per employee. HMRC have the power to name and shame any
employer who fails to pay the minimum wage, which could be seriously damaging
for businesses with the negative
publicity and could also affect your ability to attract the best talent when
recruiting. The businesses we work with take their responsibilities in this
area very seriously and Tamar HR is always happy to advise further. If you would like any further advice on the
national minimum wage rates or the upcoming changes, or on your business pay,
benefits and rewards more generally, please don’t hesitate to speak to one of
the team at Tamar HR.
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