The Department for Business, Innovation & Skills (BIS) has published details of its updated policy on enforcement of the national minimum wage, which includes the revised scheme for naming and shaming employers, and the new system of increased financial penalties of up to £20,000 for the most serious cases.
If an employer is found to be underpaying employees, it seems that it will be very difficult for it to wriggle out of the revised “naming and shaming” scheme. It will also face significantly higher penalties as a result. The employment status of staff such as apprentices, interns or directors can sometimes be uncertain. Therefore, an employer must be careful that it is not accidentally underpaying staff as this will not stop HMRC issuing a Notice of Underpayment and referring the employer to BIS for naming.
A checklist that sets out details of the updated policy is available on request.
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