October 05, 2010
Employers who fail to implement and adhere to newly enforced minimum wage regulations could be named and shammed in public, new government plans have revealed.
Under the new rules, the Department for Business, Innovation and Skill BIS will publically name those businesses which fail to adjust their wage payments to meet recently increased levels.
From 1st January 2010, employers will be given three months to change their ways before the BIS publically releases their names.
The news follows HM Revenue and Customs and BIS reports released this week showing that more than £4million is owed to the nation’s lowest paid employees from 2009/2010. About 19,000 people are owed £228 for the year, an 18 per cent increase on last year - £193 per worker in 2008/2009.
On October 1st, employers were instructed that minimum wage rates had increased across the board.
The new rates are: £5.93 per hour for the workers aged 21 and over, previously applicable to those aged 22 and over; £4.92 per hour for 18 – 20 year olds; and £3.64 per hour for 16 – 17 year olds.
According to the Low Pay Commission, 970,000 people will benefit from the government’s increase.