The British Woodworking Federation Group

Warning ahead of April’s National Living Wage as 92 companies named and shamed for underpaying staff

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10/03/2016

Last month 92 employers who had failed to pay their workers the National Minimum Wage (NMW), were named and shamed. Between them, the companies, which covered sectors including hairdressing, social care, hospitality, security services and joinery, owed £1,873,712 in arrears,

Warning ahead of April’s National Living Wage as 92 companies named and shamed for underpaying staffOn 1 October 2015, the NMW rose to £6.70. From 1 April 2016 the new National Living Wage will become law. Workers aged 25 years or over who are not in the first year of an apprenticeship will be legally entitled to at least £7.20 per hour and this will mean a pay rise of over £900-a-year for someone working full time on the minimum wage.

Employers are responsible for ensuring they are paying their staff correctly. Since the scheme was introduced in October 2013, 490 employers have been named and shamed, with total arrears of over £3,000,000 and total penalties of over £1,100,000. The National Living Wage will be enforced in the same way as the current NMW. Here you can view the current wage rates.

Business Minister Nick Boles said:

“There is no excuse for not paying staff the wages they’re entitled to. Our policy of naming and shaming employers who ignore the law means there are consequences for their reputation as well as their wallets.”

The naming and shaming scheme was revised in October 2013 to make it simpler to name and shame employers that do not comply with minimum wage rules. All 92 cases (none of which were BWF members) were thoroughly investigated by HM Revenue and Customs (HMRC). You can find the latest list of names and shamed companies here.

The BWF’s employment, legal and tax guidance is one of the most developed areas of our support for woodworking companies. BWF members needing advice on tax and employment matters can use our free-to-members business support helplines which includes legal assistance from Wedlake Bell, and employment advice from Croner. They can find further resources in this area under publications, where we have a number of guides and template documents.

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