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Government Fails to Name and Shame Companies Paying Under Minimum Wage

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The Government has failed to name companies who are underpaying staff despite continually promising to “name and shame” those who are breaking the law.

Critics have stated that the failure to inform the public about which companies are breaking the rules are showing that the government are not serious about tackling the minimum wage issue and eradicating poverty.

Since tougher rules on non-payment of the wage were introduced in 2013, HM Revenue and Customs has investigated 1,004 complaints against employers.

Of those investigated, 398 firms have been named after they were found to be underpaying staff. 165 have not been identified because their total arrears to employees were less than £100. 27 companies have successfully argued they have not broken the law. Despite the criticism, the Department for Business said its priority was to ensure that any wage arrears owed to workers were paid rather than naming employers before them settling what they owe.

The department added that there was a delay in the naming of companies as employers had two chances to appeal before they suffered the reputational damage of being publicly identified, but, that a list of names could be expected shortly.

Scottish Wage Higher than English Average

The news regarding the failure to name and shame those underpaying staff comes following a report from Resolution, which estimated that one in six Scottish workers would be underpaid in 2020 regardless of the steps taken by the government. Resolution urged the Scottish Government to make tackling inequality and underpayment a major issue.

However, despite the worrying warning from the organisation, a report titled “The State of Working Scotland” found that the average wage in Scotland is now higher than the average English pay packet for the first time.

The data comes despite the fact that in 2004, typical hourly pay in Scotland was 7.2% lower than in England. However, some experts have stated that England failed to benefit from the economic crisis as well as Scotland resulting in the latest findings which showed that Scotland’s average wage was above the wage in England.

Typical pay in Scotland is now at £11.92 an hour, slightly better than the average of £11.84 in England with analysis showing that average pay in Scotland has grown faster than anywhere else in the UK.

Conor D’Arcy, a policy analyst for the foundation, said: “Scotland’s impressive pay performance has been underpinned by high employment and steady economic growth, particularly in the run-up to the crash. But its recent employment and growth record has been less impressive.

“While Scotland’s strong pay growth has been good news for many workers, it is still the case that one in five employees are low paid.”

Contact our Expert Employment Solicitors in Dundee

If you have been underpaid and require legal advice or for representation regarding any other employment matter, then our team of employment law specialists can help you get the compensation and justice you deserve. Contact our team today using our online contact form.

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