The report estimates that there were 362,000 jobs paying less than NMW/NLW in April 2016, which equates to around 1.3% of all UK employee jobs.
Within the recent findings, the Government flagged up Accommodation and Food services amongst some of the worst offenders – with up to 40% of employees unpaid receiving at least 50p below the NLW.
Currently HMRC’s enforces action against those in non-compliance, through the following:
- Getting the wage arrears paid to the worker
- Civil penalties of up to 200% of the arrears owed per worker up to £20,000
- Naming scheme, under which the Department for Business, Energy and Industrial Strategy will name all employers who owe their workers over £100
- The new regime of labour market enforcement undertakings and orders
- And criminal investigation possibly resulting in a prosecution by the Crown Prosecution Service (CPS)
Depending on the severity of the case, employers can face one or even all of the penalties listed above, so it pays to ensure that your business is compliant with the current NMW and NLW requirements.