Following the latest HMRC press release naming and shaming employers for paying staff less than minimum wage, they have now published some of the excuses employers have used for failing to pay staff at minimum wage.
HMRC recognises that the vast majority of employers ensure they pay their employees at least the NMW, but, in tax year 2020-21, it has helped over 155,000 workers in the UK to recover more than £16 million in pay they were entitled to. In addition, it has issued over £14 million in penalties.
Some of the most absurd excuses for not meeting NMW obligations were:
• “She does not deserve the NMW because she only makes the teas and sweeps the floors”
• “The employee was not a good worker, so I did not think they deserved to be paid the NMW”
• “My accountant and I speak a different language – he does not understand me, and that is why he does not pay my workers the correct wages”
• “My employee is still learning so they are not entitled to the NMW”
• “It is part of UK culture not to pay young workers for the first three months as they have to prove their ‘worth’ first”
• “The NMW does not apply to my business”
• “I have got an agreement with my workers that I will not pay them the NMW; they understand, and they even signed a contract to this effect”
• “I thought it was okay to pay young workers below the NMW as they are not British and therefore do not have the right to be paid it”
• “My workers like to think of themselves as being self-employed and the NMW does not apply to people who work for themselves”
• “My workers are often just on standby when there are no customers in the shop; I only pay them for when they are actually serving someone”
With recruitment agencies listed within HMRC’s naming and shaming list online, it is important recruiters review PAYE service whether in house or outsourced. This will help prevent being in the HMRC spotlight and receiving a minimum wage audit.
Here at ePayMe our state of the art HMRC compliant software ensures candidates pay does not fall below the national minimum wage. With our Professional Passport accreditation, you can rest assured your payroll is in safe hands with us, when it comes to HMRC compliancy. If you have any concerns regarding minimum wage or any other compliance matters please contact us on 01252 863700 or via email sales@epayme.co.uk