What do Wagamama, TGI Fridays, the Marriott hotel group, have in common with an academy and a private school? The answer is that they all fell foul of the National Minimum Wage (NMW) rules.
Holbrook Academy in Suffolk, and Lyndhurst School in Surrey were amongst nearly 180 employers who were named and shamed by the Government.
Holbrook is understood to have underpaid £1,862.05 to two employees between September 2016 and January 2017, whilst Lyndhurst had failed to pay £1,696.21 to three members of staff between September 2015 and March 2017.
Both schools were fined by the Government and provided the affected staff with back pay after the errors came to light.
Andrew Rudkin, Headmaster of Lyndhurst School, claimed that the problem, which affected administration staff, was “purely an historical clerical error which was rectified immediately.”
Holbrook Academy blamed its underpayments on incorrect information it had received from the organisation that was training two members of staff for teaching assistant qualifications.
The latest round of NMW naming and shaming has revealed that 9,200 workers were underpaid a total of £1.1 million.
As well as recovering back pay on behalf of employees who have been underpaid, the Government also fined the employers a total of £1.3 million in penalties for breaking NMW laws.
Business Minister, Andrew Griffiths, said: “The world of work is changing and we have set out our plans to give millions of workers enhanced rights to ensure everyone is paid and treated fairly in the workplace.
There are no excuses for short-changing workers. This is an absolute red line for this Government and employers who cross it will get caught – not only are they forced to pay back every penny but they are also fined up to 200 per cent of wages owed.
“Today’s naming round serves as a sharp reminder to employers to get their house in order.”
From 1 April 2018, the rates for the National Minimum Wage (NMW) and National Living Wage (NLW) both increased, along with Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay.
Failures to pay the NMW or NLW, or make the correct level of contributions to workplace pensions both attract substantial fines.
On top of this, if your school is named and shamed by HMRC for not complying with the rules, you could face serious damage to your reputation. At Haslers, we are able to save schools significant time and money, by processing your payroll requirements for you.
By outsourcing your payroll you benefit from increased data security with sensitive information stored off-site. We can also ensure that your payroll is administered so that it complies with the latest regulations and that all documentation and taxation requirements are met. To find out how we can help your school, please contact us.