Named and shamed for failure to pay the National Minimum Wage

 

On 9 March 2018 the Department for Business, Energy and Industrial Strategy named and shamed 179 employers for paying their staff below the National Minimum Wage (NMW).

As well as recovering backpay for 9,200 workers, the government also fined the employers a total of £1.3 million in penalties for breaking national minimum wage laws. The most prolific offending sectors in this round were retailers, hospitality businesses and hairdressers.

Restaurant chain Wagamama topped the list, but claimed that a misunderstanding as to how the NMW Regulations apply to staff uniforms was to blame. For some time Wagamama have required their front of house staff to wear black jeans or a black skirt with a branded top. However, the business failed to realise that this requirement constitutes a “uniform” under the NMW Regulations 2015, meaning their employees should have been reimbursed for the cost of purchasing these items. According to Wagamama, this misunderstanding accounted for why their staff were not being paid as much as they should have been.

 

Business, Finance & Law