Earlier this month Norman Lamb, the Minister for Employment Relations named an employer under the BIS Scheme for “naming and shaming” employers who flaunt the National Minimum Wage (NMW) Legislation.
Mrs Rita Patel, the owner of Treena Professional Hair and Beauty based in Leicester has been named as the latest offender. She failed to pay £3,361.22 to a former employee in respect of the arrears of NMW following an investigation by HM Revenue & Customs (HMRC). This resulted in HMRC enforcing the debt through the court. During a four and a half month period, the employee was paid £342 and not the £3,703.22 she was entitled to under NMW.
The minister said “The law is clear. 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. Where arrears of the minimum wage are identified by HMRC they will always be pursued.” He went to say “There is no excuse for not paying the NMW in the first place but failing to pay when required to do so by investigators from HMRC is unacceptable.”
The BIS scheme to name employers came into force on 1 January 2011. It is one of a range of tools to deter businesses from breaches of the NMW legislation with the treats of bad publicity. In addition to this employers can face financial penalties of up to £5,000 and, for more serious cases, prosecution.
If you have any questions about NMW please contact our payroll team on 01332 680540 or email email@example.com
September 17th, 2012