Crack down on low pay

Employers who fail to pay the National Minimum Wage or The National Living Wage will continue to be named by the Government following a review of its existing rules.

Business Minister, Kelly Tolhurst said: "Anyone who is entitled to the minimum wage should receive it - no ifs, no buts - and we're cracking down on companies that underpay their workers."

The Government has also increased the threshold for naming employers. Firms that owe arrears of more than £500 in National Minimum Wage payments will now be named. Previously, the threshold was £100. There will be increased support to help employers comply with the rules. The amended rules will be effective from 6th April 2020.

There are also changes to widen the range of pay arrangements available to organisations employing 'salaried hours' workers.

These changes include:

  • permitting additional payment cycles for salaried workers, including fortnightly and 4-weekly cycles, providing choice and flexibility to employers and workers
  • allowing employers to choose the ‘calculation year’ fit for their workers, helping them to better monitor the hours worked by salaried workers and identify potential underpayment of wages
  • ensuring salaried workers can receive premium pay, for example for working on Bank Holidays, without losing their entitlement to equal and regular instalments in pay

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