Our current National Minimum Wage (NMW) laws have now been in force for more than 25 years. So why are some employers still being ‘named and shamed’ for failing to comply?
Getting things wrong…
The Department for Business and Trade (DBT) recently ‘named and shamed’ 518 employers who were found to have failed to pay the correct NMW to roughly 60,000 of their workers. Among the list of ‘offending’ employers are some household names, including Pizza Express, Lidl and British Airways. To be fair to these companies (and many others on the list), the underpayments were often inadvertent and were promptly rectified as soon as the problem came to light. However, if sophisticated and well-resourced companies such as these can fall foul of the rules, what hope is there for the rest of us?
Do you need to review your practices?
Given recent increases in NMW rates, now is the time to conduct a brief ‘audit’ on your own payment practices. Have you taken account of the increased rates that came into force at the beginning of April 2025? Do you have a system in place for promptly increasing wage rates when people move from one age bracket to the next? If you have more complicated pay arrangements in place (e.g. salary sacrifice schemes, shift work or other variable pay arrangements and frequent deductions from wages or expenses claims), have you factored in the increased risk of making mistakes?
Need a hand?
If you have questions about NMW compliance, please get in touch. After all, you don’t want to find yourself on the DBT’s next list of ‘offending’ employers. Nor do you want to be subjected to a financial penalty to boot!
Want to read more?
A full list of all those businesses recently ‘named and shamed’ by the DBT can be found here:
https://www.gov.uk/government/news/over-74-million-put-back-in-working-peoples-pockets-by-employers
James qualified as a solicitor in 2001, having completed his academic studies at the University of Sheffield. Throughout his career, he has worked for a number of prestigious regional law firms, joining stevensdrake as Head of Employment Law in 2012.
As well as pursuing and defending the full range of Employment Tribunal claims, James spends a considerable amount of his time providing advice and support to businesses of various sizes. He advises on a wide variety of HR and employment law issues, including employment contracts, HR processes and procedures, grievances, disciplinary issues, absenteeism, performance management and settlement agreements. He also regularly helps clients with redundancy exercises and internal reorganisations.
James has previously been described as an ‘Associate to Watch’ by Chambers UK, an independent guide to the legal profession. His clients regard him as “thorough”, “easy to work with” and someone who avoids blinding them with legal jargon.
Outside of work, James balances family life with ambitions of swimming, running and cycling a bit faster.
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