GMB Calls For Directors Of 37 Firms Named For Not Paying National Minimum Wage To Be Denied Further Directorships
The enforcement rules should also be changed so that trade unions can make complaints to HMRC on behalf of members says GMB.
GMB commented on the naming and shaming 37 employers who Government has branded National Minimum Wage offenders. See notes to editors for copy of press release from BIS naming the 37 companies from across the UK.
Martin Smith, GMB National Organiser, said “Far too few wage dodging employers not paying the national minimum wage have been bought to justice.
Government needs to make a real commitment to making work pay by more aggressively seeking out offenders to prosecute them. The enforcement rules should also be changed so that trade unions can make complaints to HMRC on behalf of members.
As part of the public disgracing for the firms named GMB is calling for the directors of these companies to be placed on a "wage offenders register" at Companies House and be deemed an unfit person to hold any further directorships.
There needs to be a recognition that a national minimum wage of £6.50 is near impossible to live on as it is without relying on state benefits.
There are bucket loads of evidence that an uplift of at least 50p per hour would help the low paid and start to stimulate the economy and that all the big firms including the retailers can afford it.
There is no justification for the national minimum wage not keeping up with inflation. The Low Pay Commission should recommend a rate of at least £7 per hour from October 2014 to make up the ground lost since 2006.
It is time for the Low Pay Commission to do what it says on the tin – “fight for the low paid”.”
Contact: Kamaljeet Jandu 07956 237178 or Martin Smith 07974 251722 or Cath Speight 07506 711925 or 07921 2898880
Notes to editors
Press release from Department of Business, Innovation and Skills dated 15 January 2015.
Government names and shames 37 National Minimum Wage offenders
A further 37 employers who failed to pay their workers the National Minimum Wage have been named today (15 January 2015) by Business Minister Jo Swinson.
Between them they owe workers a total of over £177,000 in arrears and have been charged financial penalties totalling over £51,000.
The government has already named 55 employers since the new naming regime came into force in October 2013. They had total arrears of over £139,000 and total penalties of over £60,000.
Due to the importance the government places on compliance and enforcement, HM Revenue and Customs’ (HMRC) National Minimum Wage enforcement budget will be increased by a further £3 million in financial year 2015 to 2016 – taking the total to £12.2 million. The extra money will go towards increasing the number of HMRC compliance officers to identify businesses that exploit their workers by paying them below the National Minimum Wage.
Business Minister Jo Swinson said:
Paying less than the minimum wage is illegal, immoral and completely unacceptable. If employers break this law they need to know that we will take tough action by naming, shaming and fining them as well as helping workers recover the hundreds of thousands of pounds in pay owed to them.
We are also looking at what more we can do to make sure workers are paid fairly in the first place. As well as being publicly named and shamed, employers that fail to pay their workers the National Minimum Wage face penalties of up to £20,000. We are legislating through the Small Business, Enterprise and Employment Bill so that this penalty can be applied to each underpaid worker rather than per employer.
The 37 employers are:
Kings Group LLP, Hertfordshire, neglected to pay £53,808.91 to 53 workers
Kings Group Lettings LLP, Hertfordshire, neglected to pay £26,893.43 to 49 workers
Chi Yip Group Ltd, Middleton, neglected to pay £15,566.78 to 13 workers
Kingsclere Nurseries Ltd trading as Abacus Day Nursery, Newbury, neglected to pay £12,904.19 to 8 workers.
Ms Thap Thi Ly trading as Sweet N Sour, Fleetwood, neglected to pay £11,039.14 to 2 workers
Michael Kearney trading as Electrical Estimates, Ceredigion, neglected to pay £5,557.91 to 4 workers
ABC Early Learning and Childcare Centre UK Ltd, Wolverhampton, neglected to pay £5,329.25 to 68 workers
C J Hartley Ltd trading as Headwork, Sheffield, neglected to pay £4,762.64 to 4 workers
Mrs Kelly Jayne Lockley trading as Diva Hair Design, Walsall, neglected to pay £4,103.65 to a worker
Browncow Tanning Ltd trading as Fake Bake Hair & Beauty Boutique, Glasgow, neglected to pay £3,406.66 to 2 workers
J Wood Joiners & Builders Ltd, Edinburgh, neglected to pay £3,373.19 to 4 workers
Louise Ross Trading as Luxe Salon, Leeds, neglected to pay £3,368.13 to a worker
H&M Hennes & Mauritz UK Ltd, London, neglected to pay £2,604.87 to 540 workers
Building Projects Ltd, Dundee, neglected to pay £2,345.85 to 3 workers
David A Farrer Ltd, Morecambe, neglected to pay £2,261.00 to a worker
Julian’s Hair Salon Ltd, Newbury, neglected to pay £2,131.35 to a worker
Motorists Discount Store Ltd trading as TMS Autoparts, Manchester, neglected to pay £2,025.19 to a worker
Ms Dawn Platts trading as Level 2 Hair Studio, Barnsley, neglected to pay £1,186.89 to a worker
Myers and Family Ltd, Wakefield, neglected to pay £1.598.82 to a worker
Welcome Break Holdings Ltd, Newport Pagnell, neglected to pay £1,318.70 to 19 workers
Callum Austin Ltd trading as Jason Austin Hairdressers, Kettering, neglected to pay £1,899.66 to 2 workers
Mrs Karen Riley Trading as Crave, Preston, neglected to pay £1,179.09 to 7 workers
RPM Performance Rally World Ltd, Maldon, neglected to pay £998.71 to a worker
Ego Hair & Beauty (Anglia) Ltd, Colchester, neglected to pay £985.55 to a worker
Mr Jinit Shah trading as Crystal Financial Solutions, Middlesex, neglected to pay £941.65 to a worker
Counted4 Community Interest Company, Sunderland, neglected to pay £930.73 to a worker
HAE Automotive Services Ltd, Harrogate (ceased trading), neglected to pay £798.16 to a worker
Vision on Digital Ltd, Ossett, neglected to pay £683.86 to a worker
Ultimate Care UK Ltd, Ipswich, neglected to pay £613.79 to 7 workers
Century Motors (Sheffield) Ltd, Sheffield, neglected to pay £571.72 to a worker
Mr D Eastwell & Mr G Brinkler trading as The Salon, Letchworth Garden City, neglected to pay £409.85 to a worker
Rumble (Bedworth) Ltd, Nuneaton, neglected to pay £404.41 to a worker
Shannons Ltd, Worthing neglected to pay £313.76 to a worker
Holmes Cleaning Company, Worksop neglected to pay £240.48 to a worker
Learnplay Foundation Ltd, West Bromwich, neglected to pay £224.73 to a worker
Adrien Mackenzie trading as Maverick Models, Manchester, neglected to pay £205.52 to a worker
QW Security Ltd, Hartlepool, neglected to pay £126.20 to a worker
The 37 cases named today were thoroughly investigated by HM Revenue and Customs after workers made complaints to the free and confidential Pay and Work Rights Helpline.
The scheme was revised in October 2013 to make it simpler to name and shame employers that do not comply with minimum wage rules.
Notes to editors
1.Employers have a duty to be aware of the different legal rates for the National Minimum Wage. The current National Minimum Wage rates are:
Adult rate (21 and over) - £6.50 per hour
18 to 20 year olds - £5.13 per hour
16 to 17 year olds - £3.79 per hour
Apprentice rate - £2.73 per hour
The apprentice rate applies to apprentices aged 16 to 18 years old and those aged 19 and over who are in their first year. All other apprentices are entitled to the National Minimum Wage rate for their age.
2.The government is committed to increasing compliance with minimum wage legislation and effective enforcement of it. Everyone who is entitled to the minimum wage should receive it. The BIS scheme to name employers who break minimum wage law came into effect on 1 January 2011. The scheme is one of a range of tools at the government’s disposal to tackle this issue. Employers who pay workers less than the minimum wage not only have to pay back arrears of wages at current minimum wage rates but also face financial penalties of up to £20,000. In the most serious cases employers can be prosecuted.
3.From 1 October 2013 the government revised the naming scheme to make it simpler to name and shame employers who break the law. Under this scheme the government will name all employers that have been issued with a Notice of Underpayment (NoU) unless employers meet one of the exceptional criteria or have arrears of £100 or less. All 37 cases named today failed to pay the national minimum wage and have arrears of over £100.
4.Employers have 28 days to appeal to HMRC against the NoU (this notice sets out the owed wages to be paid by the employer together with the penalty for not complying with minimum wage law). If the employer does not appeal or unsuccessfully appeals against this NoU, BIS will consider them for naming. The employer then has 14 days to make representations to BIS outlining whether they meet any of the exceptional criteria:
naming by BIS carries a risk of personal harm to an individual or their family
there are national security risks associated with naming in this instance
other factors which suggest that it would not be in the public interest to name the employer (employer to provide details)
If BIS do not receive any representations or the representations received are unsuccessful, the employer will be named via a BIS press release under this scheme.
5.Further information about the revised BIS NMW naming scheme can be found in Enforcing national minimum wage law.