Naming and shaming businesses who underpay workers

By : Administrator
Published 8th June 2014 |
Read latest comment - 9th June 2014

The government has decided to name and shame 25 businesses who pay their workers less than the minimum wage.

What's interesting is they are targeting what looks like small businesses, and some of the sums of money are pretty low, so it's an obvious shot across the bows for all employers.

Here's some of those quoted:

HSS Hire Service Group Ltd, Manchester, which failed to pay £149.00 to 15 workers.

Dakal Ltd, Northampton, which failed to pay £252.00 to two workers.

CPS SW Ltd, Exmouth, which failed to pay £261.29 to a worker.

Full article from the BBC


Steve Richardson
Gaffer of My Local Services
My Local Services | Me on LinkedIn
Comments

You will probably find that it's not always because they are simply not paying the correct hourly rate but they are making these other deductions which then brings down the hourly rate and they are getting caught out.

A common one is deducting time from employees hours when they travel between sites/customers and not paying them for it. Seen this loads on forums from employees complaining about it. Care workers often get this deducted too. I know someone who took 15 mins to do a typical drive from one house to the next, a time that cannot be argued when driving at the max speed limit and on a good day with no traffic hold ups such as school runs, etc. Yet they stated they needed to do it in 10 minutes and would therefore not get paid for the other 5 minutes. Add this up x ex trips and then x by all employees, and it soon adds up. Greedy employers.


indizine
indizine

I'm not sure that by naming and shaming businesses actually helps the situation. Just done a search on one of the businesses, they only set up 2 years ago and owe a worker less than £300. Ok they should not have done so, but words of advice from the powers that be would probably been enough. Instead they have been financially penalised, they've also got more web presence now, than what they could ever of dreamed about having.

Strangely HMRC fails to name and shame the largest businesses involved because it feels it needs to protect taxpayers confidentiality. Either name and shame everyone or name no one and have a level playing field. I've never paid the minimum wage to anyone simply because everyone regardless of what they do earns well in excess of it. In London we also have the 'London living wage' which is set out by the Greater London Authority i.e. Boris Johnson, it is currently set at £8.80 per hour or £70.40 a day based on a 40hr week, although not law, it is the recommended wage for low paid workers in London. Now that's fine if your daily turn over covers that amount, if it doesn't then there is one more person on benefits and for many if they put their rates up to cover the additional costs, then their find they will have no business.....  


Thanks,
Barney

In total agreement with Barney, name all or not, but you can't pick & choose which names to publish.

Also Indizine has made a fair point - my ex used to do some carework part time and wasnt paid in between jobs, plus had to pay own fuel (allegedly the hourly rate included a fuel payment!) and even for her own CRB check - absolutely shocking what they get away with. 


Clive

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