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Between 2012 and 2013, Her Majesty’s Revenue and Customers (HMRC) identified 736 employers who failed to comply with national minimum wage (NMW). This led to the recovery of £3.9 million in unpaid wages for over 26,500 workers, reports lawspeed.com.
New rules effective from 1 October 2013 are targeting these non-compliant employers. Those who fail to pay the NMW could forfeit their reputation by being publicly named and shamed under the revised naming scheme, which has stripped back regulations, making it is easier to name employers who break minimum wage laws.
Rogue employers will not only risk reputational consequences but also economic sanctions, as HMRC has the power to require payment, issue fines of up to £5,000, and even take civil or criminal action. These new rules are part of the government’s efforts to toughen up enforcement and increase compliance of the NMW.
As of the 1 October, workers aged 21 and over will now receive £6.31 and workers aged at least 18 but not yet 21 will receive £5.03.
The NMW must be paid to all persons who fall within the category of employee or worker. For recruiters this will usually cover temporary employees and PAYE temporary workers but for individuals working through umbrella or personal service companies (PSC), it will be the umbrella or PSC rather than the recruiter who is responsible for ensuring that the NMW is paid.