Hundreds of employers handed penalties for illegally underpaying workers

Image by Pete Linforth from Pixabay

Thousands of hard-working Brits who have been denied over £7.3 million in pay by their employers have been directly repaid as part of latest Government crackdown on those who fail to pay the minimum wage.

The findings come alongside enforcement action against businesses failing to pay their staff the legal National Minimum Wage, making clear that workers won’t be made to pay for the mistakes or negligence of those they work for, regardless of how big or well-known they are.

One of the almost 400 employers listed for failing to pay the National Minimum Wage is a Long Eaton based Property Maintenance Service which failed to pay £1,328.55 to one of its workers.

New figures show a total of around £12.6 million in penalties have been issued to 389 employers, with these fines coming on top of the repaid wages.

Business Secretary Peter Kyle said: “The vast majority of businesses in this country do the right thing by paying their staff properly and playing by the rules. It’s not fair on them when others are able to get ahead by not paying the wages their workers are owed.

“A good employer doesn’t build their business on the back of unpaid wages, and I look forward to working with the new Fair Work Agency to ensure its powers are used to crack down on those who think the rules don’t apply to them.”

Recently published data reveals that businesses across sectors including social care, sports and retail, were among those failing to comply with minimum wage laws.

This is the first ‘naming round’ since the Chancellor’s Budget commitment to publish more frequently, this puts more pressure on employers to keep their payroll up to date and boosts workers’ confidence that when they’re treated poorly by their boss, swift justice will follow.

Employment Rights Minister Kate Dearden said: “Nobody should finish a week’s work and find they’ve been paid less than they’ve earned. I believe in a fair day’s pay for a fair day’s work. That’s why we’re cracking down on employers who underpay. We’re making sure workers get the hard earned pay they deserve. I encourage every employer to check their payroll to ensure they don’t get caught out.”

This is also the final naming round before the Fair Work Agency begins its work on 7th April, a brand-new enforcement body formed through the recently passed Employment Rights Act to bring workers’ rights enforcement under one roof for the first time.

Offering a single, streamlined place where employers will be able to get guidance on how to follow the rules, the Fair Work Agency will have more muscle to ensure that workers across the country get every penny they are owed.

This not only includes enforcing payment of the minimum wage but is soon set to tackle those who break the law by denying holiday and sick pay.

The announcement also comes ahead of further increases to the minimum wage, which will see the lowest earners over 21 years old receive an annual pay boost of £900 for those working full time. Coming alongside the decision to extend Statutory Sick Pay to 3 million more workers, freeze the 5p fuel duty cut and cap energy prices so that households save £117 on their bills next month, this Government is demonstrating its commitment to support people across the UK with the cost of living.