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10 Worst Excuses for Not Paying the Minimum Wage

To coincide with the 15th anniversary of the National Minimum Wage (NMW), HMRC has revealed in a press release some of the more elaborate and unusual reasons cited by employers for not meeting their obligations under the UK’s NMW legislation.

One employer claimed that a worker was his wife but then had to ask her name. Another employer said that as their employees didn’t speak English, they weren’t entitled to the minimum wage, while others simply tried to deny the employee worked there at all. In another case an employee ran out of the premises when HMRC arrived to check for NMW infringements, the same employee then returned – minus the work pinafore – pretending to be a customer.

Whilst some of the excuses may seem humorous, HMRC wish to make it clear that the NMW is not a choice and there are serious consequences for any employer who fails to meet their legal obligations. HMRC’s nationwide network of NMW enforcement teams will investigate all complaints of employers failing to pay minimum wage, will take action to recover back pay for employees and fine employers found to be deficient. Last year, HMRC’s investigations resulted in over 26,000 people getting a share of £4 million in back pay.

HMRC warns that currently, calls to the helpline from interns who are working for nothing, or for “expenses only”, are being fast-tracked to HMRC enforcement officers for investigation.

Readers are also reminded that the “naming and shaming” provisions in the NMW legislation were stripped back from 1 October 2013 so that from that date almost any employer who breaks minimum wage law can be named. Under the original scheme, employers had to meet one of seven criteria before they could be named. The minimum amount of national minimum wage owed had to be at least £2,000 and the average per worker at least £500 before an employer could be referred for naming. The revised scheme removes these restrictions.