National Minimum Wage

HMRC have just published their list of the most ridiculous excuses for flouting the law regarding the National Minimum Wage. The most absurd excuses included:

1. She does not deserve the National Minimum Wage because she only makes the teas and sweeps the floors.
2. The employee was not a good worker, so I did not think they deserved to be paid the National Minimum Wage.
3. My accountant and I speak a different language – he does not understand me, and that is why he does not pay my workers the correct wages.
4. My employee is still learning so they are not entitled to the National Minimum Wage.
5. It is part of UK culture not to pay young workers for the first three months as they have to prove their ‘worth’ first.
6. The National Minimum Wage does not apply to my business.
7. I have got an agreement with my workers that I will not pay them the National Minimum Wage; they understand, and they even signed a contract to this effect.
8. I thought it was okay to pay young workers below the National Minimum Wage as they are not British and therefore do not have the right to be paid it.
9. My workers like to think of themselves as being self-employed and the National Minimum Wage does not apply to people who work for themselves.
10. My workers are often just on standby when there are no customers in the shop; I only pay them for when they are actually serving someone.

In reality it’s no laughing matter to pay staff poorly. Here are the current rates:

• £8.91 – Age 23 or over (National Living Wage)
• £8.36 – Age 21 to 22
• £6.56 – Age 18 to 20
• £4.62 – Age under 18
• £4.30 – Apprentice

The consequences of not keeping to the rules can be painful as HMRC are encouraging concerned staff to contact them directly.

‘HMRC reviews every complaint made about the minimum wage, so if you think you are being short-changed, or are a business that is unsure of the rules or needs help to get things right, get in touch and we will help you. But any employer deliberately or unapologetically underpaying their staff will face hefty fines and other enforcement action’.