We are often asked questions about what is the best way to engage an individual and whether they are an employee, a worker, a self employed consultant, a volunteer or an intern. Part this conversation involves discussing what employment law rights each of the relevant statuses attract and the consequences of getting it wrong. This recent press release is a useful reminder that if an individual is a worker or an employee they must receive at least the National Minimum Wage and also of the consequences of failing to meet this requirement. Importantly, it highlights that not only can this lead to financial repercussions, the consequences can also be more public with the government having the ability to name and shame employers.
More than 100 employers who have failed to pay their workers the National Minimum Wage have been named and shamed, Business Minister Nick Boles announced today (23 October 2015). Between them, the 113 companies named owed workers over £387,000 in arrears, and span sectors including hairdressing, retail, education, catering and social care. Since the scheme was introduced in October 2013, 398 employers have been named and shamed, with total arrears of over £1,179,000 and total penalties of over £511,000.