WHETHER you agree with it or not, the National Minimum Wage (NMW) has been with us for 15 years. Failure to comply can result in an employer not only having to make up the difference to the employee, but also substantial penalties.
However, that does not stop some employers from ignoring their responsibilities and they then often attempt to find an excuse when caught out. The tax office has recently published 10 of the more elaborate ones given in the past year.
•One employer said a woman on the premises was not entitled to NMW as she was his wife. When asked what his wife’s name was the employer responded “err, her name? err, what’s your name love?”
•Another said “I don’t think my workers know anything about the NMW because they don’t speak English.”
•A third said that he always increased wages when the NMW goes up even if the total pay was still below the NMW. He added “I don’t think its right to ignore the rises in NMW.”
•Several employers paying rates below NMW suggested that accommodation they provided workers made up for their shortfall in wages.
•Another one responded “I know I am paying them too little, but they are happy to work for this amount because they are getting experience.”
•In another case, an employee claimed to be just working for a few days with a view to buying the business. However, his name was found on historic records over a substantial period.
•One employer said that he knew he was not paying employees NMW and had just increased their wage. However, the new rate was still below NMW.
•Another claimed “It wasn’t a conscious decision to say ‘I’m not going to pay this’, but I’ve never really considered doing it because I’ve not had people come to me and say, ‘I’m not getting paid enough’ or ‘Is this the minimum wage?’”
•In another case, an employee ran out of the premises when HMRC arrived to check NMW. He then returned pretending to be a customer.
•Finally, an employee claimed to be a friend of the owner and said that he was only in the restaurant on a visit. However, HMRC returned a few days later only to find that the person was in the kitchen preparing food.
Anyone who believes they are not being paid the National Minimum Wage can call the Pay and Work Rights Helpline, in confidence, for advice in over 100 languages on 0800 917 2368. Currently, calls to the helpline from interns who are working for nothing, or for “expenses only”, are being fast-tracked to HMRC enforcement officers for investigation.
WatkinsonBlack are pleased to advise on these as well as other matters, including providing a very cost-effective payroll bureau service. If you want to arrange a no-obligation initial meeting on any taxation or accounting matter then please contact us.
Please note that these ideas are intended to inform rather than advise and you should always obtain professional advice before taking any action.
