Minimum wage dodgers should be named and shamed – MPs
All employers who break the national minimum wage law should be named and shamed, a committee of MPs said yesterday.
At the moment, the UK Government only names companies that "wilfully disregard" the legislation.
The call was made following an investigation by the Scottish affairs committee into the enforcement of the rules.
Committee chairman Mohammad Sarwar said: "Customers must have complete confidence that the services they pay for are compliant with national minimum wage law."
"Equally, it is vital that employees understand their entitlement and are not exploited, either unintentionally due to confusion about the law or by bosses looking to make a quick buck. Naming employers who fail to comply is one crucial step in tackling this problem."
"But this must be done alongside effective awareness campaigns which get the messages about rates and penalties across to all sectors."
The National Minimum Wage Act was introduced in 1998 and sets the bar at £5.80 an hour for workers aged 22 or over.
Employees aged 1821 must be paid £4.83 and those under 18 must be paid the socalled "youth rate" of £3.57 an hour.
Since 2002, HM Revenue and Customs recorded 957 noncompliant employers with headquarters north of the border.
The majority of cases were in the hospitality sector and in hairdressing.
Last year, £711,667 of arrears were identified by Scottish teams investigating complaints.
The committee warned employers in its report, which was launched yesterday in Edinburgh, that enforcement campaigns were not working. It said: "The government must assess whether further targeted enforcement campaigns would be worthwhile and must work on this with representatives of the sectors with the highest levels on noncompliance."
"A system of naming and shaming employers who are found to be non compliant would be a further disincentive to break the law."
Perth and North Perthshire SNP MP Pete Wishart said: "The continued levels of non compliance are unacceptable and the UK Government must step up action, including the naming and shaming of rogue employers who refuse to pay staff properly for the work that they do."
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