Top 10 bizarre reasons for failing to pay NMW

HMRC officials have released ten of the most bizarre responses provided by unscrupulous employers when questioned on their reasons for failing to pay the national minimum wage. Excuses included:

• believing it was acceptable to underpay workers until they had "proved" themselves;
• believing it was permissible to pay foreign workers less than the NMW since they didn't have the right to it;
• that someone who made the tea and swept the floor didn't deserve to be paid the NMW;
• when there were no customers to serve staff are on standby. They are only paid when they are actually serving someone; and
• my workers are self employed so are not entitled to NMW.

In light of these revelations, the Department for Business, Energy & Industrial Strategy has announced a new awareness campaign to ensure workers understand their rights under the law and to encourage workers to check their pay to ensure they are receiving at least the statutory minimum.

It is therefore an important reminder that all employers need to stay on the right side of the National Minimum Wage

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.