Paying Employees Minimum Wage

‘It doesn’t apply to my business’: Business Owners’ Worst Excuses for Not Paying Employees Minimum Wage

The worst excuses for paying staff below minimum wage have been revealed today, ahead of the release of the government’s advertising campaign to encourage workers to check they are being paid the minimum wage.

The Department for Business, Energy and Industrial Strategy released some of the most startling responses they’ve received when asking employers why they pay their staff below minimum wage.Paying Employees Minimum Wage

These included; because the employee “wasn’t a good worker”, because not paying young workers for the first three months of their employment is part of ‘UK culture’ to first have them prove their ‘worth’ and because “she only makes the teas and sweep the floors”.

Another employer reasoned that the minimum wage “doesn’t apply to my business”. While one business owner in the retail sector went as far as to share his own personal definition of retail work, citing: “I only pay them for when they’re actually serving someone”.

Just under 700 businesses have been fined by HMRC since 2013 for underpaying their employees, being forced to pay £3.5 million of missing wages.

Business minister, Margot James, said: “There are no excuses for underpaying staff what they are legally entitled to. This campaign will raise awareness among the lowest paid in society about what they must legally receive and I would encourage anyone who thinks they may be paid less to contact Acas as soon as possible.

“Every call is followed up by HMRC and we are determined to make sure everybody in work receives a fair wage.”

The government’s £1.7 million advertising campaign will begin next month ahead of the minimum wage increase. The increased rate of £7.50 will be implemented on the 1st April 2017, and will apply to those 25 and over.