Government suspends scheme for naming employers who fail to pay NMW

20 Jun 2019

The government has suspended its scheme for naming employers who fail to pay the National Minimum Wage (NMW).

Workers aged 25 or over and not in the first year of an apprenticeship are legally entitled to be paid at least the National Living Wage (NLW). Employers who deliberately fail to pay the NMW may face a potentially unlimited fine.

In 2018, a recommendation to review the scheme in its entirety was put forward by David Metcalf, the Director of Labour Market Enforcement.

Commenting on the matter, Greg Clark, Secretary of State for Business, Energy and Industrial Strategy, said: 'Enforcement of the NMW and the NLW is a priority for the government, and we take tough action against the minority of employers who underpay.

'As part of our enforcement approach, we name employers who have breached the legislation, which raises awareness of NMW enforcement and deters others who may be tempted to break the law. The government are reviewing the naming scheme to ensure that it continues effectively to support minimum wage compliance.'

During 2018, HMRC issued financial penalties totalling £17 million to more than 1,000 UK firms who were found to be non-compliant with the NMW regulations.