business news

UK reprimands 191 businesses for breaking National Minimum Wage Law

UK reprimands 191 businesses for breaking National Minimum Wage Law
UK reprimands 191 businesses for breaking National Minimum Wage Law

The Government of United Kingdom has reportedly named and reprimanded more than 191 businesses for the breach of its National Minimum Wage Law. After investigations by HRC (Her Majesty’s Revenue and Customs), it was found that these companies owe an overall amount of £2.1 million to more than 34,000 workers.

Back in April 2021, the government escalated the National Minimum Wage and National Living Wage rates, giving a pay rise to millions. The hike means that a person working full time on the National Living Wage will be annually taking home £5,400 more than what they were in 2010. Regardless of profession or age, each single UK worker is accredited to the National Minimum Wage.

According to Paul Scully, the Business Minister, the country’s minimum wage laws are there for ensuring a fair day’s pay and it is unacceptable if any firm comes up short. Scully further added that, all businesses, comprising those on the list, are required to provide a proper pay to employees. He further assured that the government will continue to protect the rights of workers in a vigilant manner, and businesses that short-change employees would not be getting off lightly.

For the record, the breaches took place between the years 2011 and 2018. The named businesses have since been made to reimburse the amount owed by them. These companies were also fined an additional sum of £3.2 million, which depicts that the amount is never acceptable to underpay workers.

While not all minimum wage underpayments are intended, it has always been the responsibility of all companies for abiding by the law. The UK government has made clear guidance with regards to the same available on gov.uk, and has insisted that it should be checked by all employers. Minimum breaches on wage can occur when employees are being paid on or just above the minimum wage rate, and then have deductions from their pay for accommodation or uniform.

Source credit: https://www.gov.uk/government/news/employers-named-and-shamed-for-paying-less-than-minimum-wage

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.