Enter your email address to stay in touch

Excuses, excuses

Why gov’t must name bosses not paying min wage
Ryan Fletcher, Wednesday, January 11th, 2017


The worst excuses of bosses guilty of not paying staff the minimum wage – including “she only makes tea”, “I only pay them when customers are in the shop” and “they aren’t British so don’t have the right to be paid it” – have been made public.

 

The list of reasons, which range from the just plain mean to the downright stupid, was compiled by HMRC investigators who asked rip-off bosses why they were breaking the law by not paying the minimum wage.

 

Other excuses included, “the employee wasn’t a good worker so I didn’t think they deserved to be paid the national minimum wage” and “it’s part of UK culture not to pay young workers for the first three months as they have to prove their ‘worth’ first.”

 

But the list, published as part of a government awareness campaign to highlight the issue, was released just a few days after it was revealed that not a single employer who has been named and shamed by the government for the illegal practise has been prosecuted for their crimes.

 

Since 2013, around 700 firms have been publicly shamed, fined a total of ÂŁ1.7m and been made to pay back ÂŁ3.5m in wage arrears, for failing to pay their employees enough.

 

‘Weak deterrent’

However the punitive measures have been described by Unite and opposition MPs as a slap on the wrist that is a weak deterrent for other unscrupulous bosses.

 

Household names who have failed to pay the minimum include Sports Direct, Brighton & Hove Albion FC, Blackpool FC and Monsoon.

 

‘Gig economy’ firm Uber, which claimed its workers were self-employed and therefore not entitled to the minimum wage, was also told at a tribunal in October that it must also pay the legal rate.

 

Now the government is urging workers to check their payslips to ensure they are being paid the minimum and to report their employers if they’re not.

 

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.”

 

Gov’t failed to take action

But Unite assistant general secretary Steve Turner said James’ words on the issue were just that – and the government has failed to take the strong action needed to tackle rogue employers.

 

“This government is only interested in short term, sound-bite politics; they want to look like they’re making an effort rather than actually doing anything. The answer to low pay exploitation and the growing inequality that accompanies it, is of course to prosecute employers that don’t pay the minimum wage,” Turner said.

 

“But more importantly, we need to build and support strong, powerful trade unions and legislate to introduce a system of sector level collective bargaining to raise standards and end the obscenity of low pay, along with other forms of workplace exploitation.”

 

Top 10 list of the worst excuses given to HMRC for not paying the minimum wage are:

 

  1. The employee wasn’t a good worker so I didn’t think they deserved to be paid the National Minimum Wage.

 

  1. It’s part of UK culture not to pay young workers for the first three months as they have to prove their ‘worth’ first.

 

  1. I thought it was ok to pay foreign workers below the National Minimum Wage as they aren’t British and therefore don’t have the right to be paid it.

 

  1. She doesn’t deserve the National Minimum Wage because she only makes the teas and sweeps the floors.

 

  1. I’ve got an agreement with my workers that I won’t pay them the National Minimum Wage; they understand and they even signed a contract to this effect.

 

  1. My accountant and I speak a different language – he doesn’t understand me and that’s why he doesn’t pay my workers the correct wages.

 

  1. My workers like to think of themselves as being self-employed and the National Minimum Wage doesn’t apply to people who work for themselves.

 

  1. My workers are often just on standby when there are no customers in the shop; I only pay them for when they’re actually serving someone.

 

  1. My employee is still learning so they aren’t entitled to the National Minimum Wage.

 

  1. The National Minimum Wage doesn’t apply to my business.
Avatar

Related Articles