[UK] HMRC reveals employers’ worst excuses for not paying minimum wage

In the UK the hourly minimum wage rate varies depending on age and experience and most employers comply with this legal requirement but HMRC has revealed some of the more “ridiculous” excuses employers have made to avoid it, The National reports.

“My accountant and I speak a different language” and “she only makes teas” are among the excuses employers used to explain their failure to pay staff the National Minimum Wage in the past financial year, HMRC said.

One employer reportedly claimed it is part of UK culture not to pay young workers for their first three months of employment so they can “prove their worth.” Another said they only pay workers for time spent serving customers in the shop, not when they are “just on standby”.

Other excuses included an employer purporting to believe that non-British workers do not have the right to be paid the minimum wage, while another claimed their workers “like to think of themselves as being self-employed and the National Minimum Wage does not apply to people who work for themselves”.

One creative employer had members of staff sign a contract to say that they will not be paid the minimum wage.

Steve Timewell - HMRC director of individuals and small business compliance - said, “This list shows some of the excuses provided to our enforcement officers by less scrupulous businesses. Being underpaid is no joke for workers, so we always apply the law and take action. Workers cannot be asked or told to sign away their rights.”

He added, “Any employer deliberately or unapologetically underpaying their staff will face hefty fines and other enforcement action.”

The National Minimum Wage starts at £4.30 an hour for an apprentice and £4.62 per hour for those aged under 18, rising to £6.56 for those aged 18 to 20, £8.36 for those aged 21 to 22 and £8.91 per hour for anyone aged 23 or over.

In early August HMRC disclosed that 191 companies - including John Lewis, Pret A Manger and The Body Shop - failed to pay £2.1 million to more than 34,000 workers between 2011 and 2018.

In addition, new research in July found that around 3.7 million people are “trapped” in low-paid and insecure work, often receiving less than 24 hours notice for their shifts.

The Living Wage Foundation said its analysis of official figures showed that almost half of insecure, low-paid workers were away from work, mainly due to being furloughed, during the height of the pandemic, compared to fewer than a fifth of other workers.

Source: The National

In the UK the hourly minimum wage rate varies depending on age and experience and most employers comply with this legal requirement but HMRC has revealed some of the more “ridiculous” excuses employers have made to avoid it, The National reports.

“My accountant and I speak a different language” and “she only makes teas” are among the excuses employers used to explain their failure to pay staff the National Minimum Wage in the past financial year, HMRC said.

One employer reportedly claimed it is part of UK culture not to pay young workers for their first three months of employment so they can “prove their worth.” Another said they only pay workers for time spent serving customers in the shop, not when they are “just on standby”.

Other excuses included an employer purporting to believe that non-British workers do not have the right to be paid the minimum wage, while another claimed their workers “like to think of themselves as being self-employed and the National Minimum Wage does not apply to people who work for themselves”.

One creative employer had members of staff sign a contract to say that they will not be paid the minimum wage.

Steve Timewell - HMRC director of individuals and small business compliance - said, “This list shows some of the excuses provided to our enforcement officers by less scrupulous businesses. Being underpaid is no joke for workers, so we always apply the law and take action. Workers cannot be asked or told to sign away their rights.”

He added, “Any employer deliberately or unapologetically underpaying their staff will face hefty fines and other enforcement action.”

The National Minimum Wage starts at £4.30 an hour for an apprentice and £4.62 per hour for those aged under 18, rising to £6.56 for those aged 18 to 20, £8.36 for those aged 21 to 22 and £8.91 per hour for anyone aged 23 or over.

In early August HMRC disclosed that 191 companies - including John Lewis, Pret A Manger and The Body Shop - failed to pay £2.1 million to more than 34,000 workers between 2011 and 2018.

In addition, new research in July found that around 3.7 million people are “trapped” in low-paid and insecure work, often receiving less than 24 hours notice for their shifts.

The Living Wage Foundation said its analysis of official figures showed that almost half of insecure, low-paid workers were away from work, mainly due to being furloughed, during the height of the pandemic, compared to fewer than a fifth of other workers.

Source: The National