- Nearly £75,000 identified for 206 workers underpaid minimum wage rates.
- 15 Scottish employers named and fined nearly £70,000 after underpayment
- Naming round comes before minimum wage rates rising on 1 April
The UK Government has today (9 March) named and shamed 15 Scottish employers for underpaying more than 200 minimum wage workers by nearly £75,000.
Across the UK 179 employers have been named for underpaying 9,200 minimum wage workers by £1.1 million.
The UK Government also fined the employers a total of £1.3 million in penalties for breaking national minimum wage laws. Fines for Scottish employers totalled £70,000.
As well as recovering backpay for 9,200 workers, the UK Government also fined the employers a total of £1.3 million in penalties for breaking national minimum wage laws. The most prolific offending sectors in this round were retailers, hospitality businesses and hairdressers.
It comes ahead of the next rate rise on 1 April, when the National Living Wage will go up from £7.50 to £7.83 per hour. Apprentices under the age of 19 and those in the first year of their apprenticeship will benefit from a record 5.7% rise.
Later this month the Department for Business, Energy and Industrial Strategy will launch a campaign to raise awareness of the new rates and encourage workers to speak to their employer if they think they are being underpaid.
UK Government Minister for Scotland Lord Duncan said:
It is simply unacceptable for bosses to rip off their staff by not paying at least minimum wage rates. These 15 Scottish employers are breaking the law.
These fines show just how seriously the UK Government takes this matter. Bosses who think that they can get away with short changing their hard working staff be warned – the UK Government will name and shame you and hit you in the pocket.
Business Minister Andrew Griffiths said:
The world of work is changing and we have set out our plans to give millions of workers enhanced rights to ensure everyone is paid and treated fairly in the workplace.
There are no excuses for short-changing workers. This is an absolute red line for this Government and employers who cross it will get caught - not only are they forced to pay back every penny but they are also fined up to 200% of wages owed.
Today’s naming round serves as a sharp reminder to employers to get their house in order ahead of minimum wage rate rises on 1 April.
Bryan Sanderson, Chairman of the Low Pay Commission, said:
As the National Living Wage and National Minimum Wage rates rise on 1 April, it is vital that workers understand their rights, and employers their obligations.
The Low Pay Commission is pleased to see the UK Government maintaining the momentum of its minimum wage enforcement.
The recent announcement that all workers will have a right to payslips stating the hours they have worked – an idea originally proposed by the LPC – is a positive step.
This 14th naming round comes after the government published its Good Work plan last month, which announced the right to a payslip for all workers. The new law is likely to benefit around 300,000 UK workers who do not currently get a payslip.
For those paid by the hour, payslips will also have to include how many hours the worker is paid for, making pay easier to understand and challenge if it is wrong. The move is part of the UK Government’s Industrial Strategy the government’s long-term plan to build a Britain fit for the future by helping businesses create better, higher-paying jobs in every part of the UK.
Since 2013 the scheme has identified more than £9 million in back pay for around 67,000 workers, with more than 1,700 employers fined a total of £6.3 million. The UK Government has also committed £25.3m for minimum wage enforcement in 2017/18.
Employers who pay workers less than the minimum wage not only have to pay back arrears of wages to the worker at current minimum wage rates but also face financial penalties of up to 200% of arrears, capped at £20,000 per worker.
For more information about your pay, or if you think you might be being underpaid, get advice and guidance at www.gov.uk/checkyourpay. Workers can also seek advice from workplace experts Acas.
The employers named today are:
- Heather Park Community Services Limited, North Lanarkshire ML2, failed to pay £26,018.63 to 73 workers.
- 1st Pizza Direct Limited, Highland IV3, failed to pay £25,668.15 to 87 workers.
- Mr Muhammad Adnan Safdar and Mrs Khadija Javaid, trading as Citi Dental Surgery, Glasgow City G51, failed to pay £8,733.33 to 2 workers.
- Cost Effective Catering Limited, City of Edinburgh EH4, failed to pay £4,559.11 to 23 workers.
- Mr Wayne Gray and Mrs Margaret Gray, trading as Jackson Gray, Dundee City DD3, failed to pay £2,514 to 4 workers.
- Universal United Commerce Limited, City of Edinburgh EH6, failed to pay £2,009.88 to 2 workers.
- James Ritchie Clocks (established 1809) Ltd, City of Edinburgh EH3, failed to pay £1,064.66 to 2 workers.
- Alison Margaret Smith, trading as A.M.S Hair & Beauty, City of Edinburgh EH12, failed to pay £935.21 to 1 worker.
- Mrs Lisa Chakir, trading as Chairs Hairdresser, West Lothian EH49, failed to pay £774.86 to 1 worker.
- Miss Zoe MacDonald, trading as Unique Hair & Beauty, Na h-Eileanan Siar HS1, failed to pay £686 to 1 worker.
- Clear-View Fife Limited, trading as Clear-View Cleaning Specialists, Fife KY6, failed to pay £431.63 to 1 worker.
- Saramago Ltd, trading as Saramago Café Bar, Glasgow City G2, failed to pay £425.63 to 4 workers.
- Entier Limited, Aberdeenshire AB32, failed to pay £403.07 to 1 worker.
- Jackson Gray Limited, trading as Jackson Gray, Dundee City DD3, failed to pay £343.38 to 3 workers.
- P&P Duff (Scotland) Limited, trading as Patrick, Renfrewshire PA1, failed to pay £280.15 to 1 workers.