More than 500 businesses fail to pay minimum wage | Consensus HR – Herts, Beds
More than 500 businesses, including Greggs and Harrods, failed to pay some of their employees the minimum wage, according to a list released by the Department for Business and Trade. The analysis, which covers breaches between 2015 and 2023, shows that recruitment agency Staffline topped the list for failing to pay 36,767 workers correctly, while Estée Lauder failed to pay £894,980 to almost 6,000 workers. The report shows that 524 employers have repaid more than 172,000 workers almost £16m, plus an additional penalty, for breaches in paying the statutory national minimum wage. Kevin Hollinrake, the minister for enterprise, markets and small businesses, said: “Employees deserve to get paid properly for the hard work they put in.” Caroline Harwood, an employer tax partner at BDO, said: “It’s always a bit of a shock to see so many well-known names appearing on HMRC’s list of employers who have been found to be in breach of national minimum wage rules.”
Our HR comment: – More than 500 businesses fail to pay minimum wage | Consensus HR – Herts, Beds
Matthew Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: “This never ceases to amaze me, the amount of companies that fail to pay the minimum wage considering our wages are one of the main things we all work for. However, it can also be easier said than done and hence why, the importance of ensuring yearly salary reviews take place, to give businesses the opportunity to make sure all members of the team are paid adequately.
Generally wage increases happen in April each year and is publicised extensively by the Government so as to ensure that all businesses have the information to make any changes needed. The Government has announced the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force from April 2024. In doing so, it has accepted in full the recommendations of the Low Pay Commission.
The rates which will apply from 1 April 2024 are as follows:
|
NMW Rate |
Increase in pence |
Percentage increase |
|
|
National Living Wage (21 and over) |
£ 11.44 |
£ 1.02 |
9.8% |
|
18-20 Year Old Rate |
£ 8.60 |
£ 1.11 |
14.8% |
|
16-17 Year Old Rate |
£ 6.40 |
£ 1.12 |
21.2% |
|
Apprentice Rate |
£ 6.40 |
£ 1.12 |
21.2% |
|
Accommodation Offset |
£ 9.99 |
£ 0.89 |
9.8% |
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