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government to name and shame employers

6 September 2012

By law, all employers have to pay employees at the national minimum wage (NMW) which may be enforced by HM Revenue & Customs (HMRC). In a recent case the Government has committed to clamping down on employers who break the law in this respect.

Following a HMRC investigation, Rita Patel, trading as Treena Professional Hair & Beauty, was ordered by the court to pay £3,361.22 in arrears of NMW to an employee. In 2010 Mrs Patel paid the employee just £342 for 20 weeks’ work; however by law the employee was entitled to £3,703.22.

Norman Lamb (former Minister for Employment Relations) stressed that “any worker who is entitled to the minimum wage should receive it, that’s why we are committed to clamping down on those who break the law.”

Employers should take note: part of the Government’s commitment is to publicise cases where arrears of wages are enforced by the courts, resulting in non-compliant employers facing financial and reputational damage.

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