Minimum wage lawbreakers named and shamed

Published: 01 October, 2010

Employers who flout minimum wage laws will be named and shamed ? the sanction was announced as new minimum wage rates were revealed.

Cases where employers breach the rules are to be publicised by the Department for Business, Innovation and Skills (BIS) from January 1 2011. This means wrongdoers have a three-month grace period to rectify any irregularities.

Employment Relations Minister Edward Davey said: "Bad publicity can be a powerful weapon in the fight against employers who try to cheat their workers and their competitors. Their reputation can be badly damaged if they are seen to be flouting the law."

The national minimum wage has risen from £5.80 to £5.93 and includes 21-year-olds for the first time. The minimum wage for 18-20 year-olds has been increased from £4.83 to £4.92; to £3.64 for 16-17 year-olds and there is an apprentice minimum wage of £2.50 an hour fort the first time for under-19s or those in the first year of an apprenticeship.

John Cridland, deputy director-general of the Confederation of British Industry, said: "This is a moderate increase that recognises that many businesses are still finding economic conditions challenging. A larger rise could have priced lower-paid people out of the labour market."

Meanwhile the Assocation of Convenience Stores (ACS) is continuing with its campaign for a freeze in the National Minimum Wage and has submitted evidence to the Low Pay Commission ahead of its recommendations to government in 2011.

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