Posted on by Jessica Peaty

Named and Shamed! How to stay clear of Minimum Wage breaches

The government have released a list of 200 employers who have failed to pay the national minimum wage. Companies such as AA Dispatch, Blackpool Football Club, Poundstretcher are just some of the big names we all know who have been named and shamed after failing to pay staff the correct national minimum wage.

The question is; should companies be struggling to pay their employees the national minimum wage?

Regardless of how much an employee is paid, whether it be in the lowest or highest tax bracket, being paid correctly is a massive part of a functioning business. Incorrect payments on payday can have detrimental effects on staff moral and loyalty to the company. Employers paying staff incorrectly can result in a bad company reputation, which in turn can result in a loss of business.

This problem is present amongst every industry, whether it be hospitality, non-profit organisations or retail. Underpaying staff is a common issue, which is highlighted by Gov’s huge list of companies who are all making the same mistakes. With so many laws and legislations in place to protect employees against underpayments it is shocking that over 200 companies have failed to follow them. Fortunately, the companies have paid the staff their wages and a staggering £466,219 in back- payments have been processed as a result.

As an employer, it is your duty to be aware of the different legal rates for the National Minimum Wage. The current minimum wage rates are:

  • National Living Wage (25 years and over) – £7.20 per hour
  • Adult rate of National Minimum Wage (21 years and over) – £6.70 per hour
  • 18 to 20-year olds – £5.30 per hour
  • 16 to 17-year olds – £3.87 per hour
  • Apprentice rate – £3.30 per hour

The question is however why are employers struggling to even pay staff when there are so many intelligent payroll systems and software readily available. Having a payroll system easily allows the employer to see who gets paid and what they are getting paid. The systems in place can also change the rates of pay depending on someone’s age reducing the time for manual input and decreasing the risk of common human errors. Payroll providers also add a layer of consistency, meaning payments will be made every time without fail, meaning the employer will not miss someone out or forget to send a payment as the service will do it for them.

At Selima we are proud to say with over 25 years’ experience processing payroll we are confident that our payroll service is suited to even the most complicated payroll requirements – any combination of pay frequency, spinal column points and multi role employees.

Plus, our payroll team handles over £600m of salary payments each year, maintaining consistency and ensuring every payment is made on time and accurately.

If you would like any more info on how Selima can help you keep on top of your and ensure you are not on next year’s name and shame list, click the ‘Get in Touch’ button below.

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