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Employers to be ‘named and shamed’ for NMW breaches
Employers who pay their staff less than the National Minimum Wage (NMW) risk being ‘named and shamed’, following the introduction of a new scheme earlier this month.
Rogue employers who deliberately flout the NMW legislation will now have their breaches publicised in a press release by the Department for Business, Innovation and Skills (BIS).
The Government hopes the new policy, which came into effect on 1 January 2011, will raise awareness of NMW enforcement and deter employers who would otherwise be tempted to breach NMW law.
However, the BIS said the naming scheme was not an alternative to prosecutions.
In deciding whether to name an employer, the BIS will consider, among other things, whether the employer:
- Knowingly or deliberately failed to comply with its NMW obligations
- Failed to take adequate steps to keep or preserve NMW records
- Delayed or obstructed a NMW compliance officer in the performance of their duties
- Refused or neglected to answer questions put to them by a NMW compliance officer
- Refused or neglected to provide information or produce documents to a NMW compliance officer
- Neglected to pay arrears of NMW to workers following HMRC intervention.
HMRC will not refer cases to the BIS unless the total arrears owed to workers is at least £2,000 and the average arrears per worker is at least £500.
More information on the scheme is available here.