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New Penalties For Those Who Flout National Minimum Wage

  • Thread starter Scottish Business Owner
  • Start date
Scottish Business Owner

Scottish Business Owner

New Member
Employers who fail to pay workers the national minimum wage face stiffer penalties under new rules coming into force next month.

The maximum fine for anyone failing to pay the statutory level will increase from £5,000 to £20,000.

Employers who flout the rules already face being named and shamed by the UK tax authority.

The national minimum wage for adults is currently set at £6.31 an hour, having risen by 12p an hour in October.

The rate for 18-to-20-year-olds is £5.03 an hour, while it is £3.72 an hour for the 16-to-17-year-old age group.

Business Secretary Vince Cable said: "Paying anything less than this is unacceptable, illegal and will be punished by law.

"So we are bringing in tougher financial penalties to crack down on those who do not play by the rules. The message is clear - if you break the law, you will face action."

BBC Article here >>> http://www.bbc.co.uk/news/business-25743929

What's your thoughts on the NMW? Is it still too low or do you think it's too high and therefore discourages small businesses from taking on staff?
 
R

Robert Frost

New Member
Seems a good idea to me. although I must admit I've seen apprentiships offering much less than that - they seem to have a rule of their own!
 
Gemma Rowlands

Gemma Rowlands

New Member
I think that NMW is a good thing, and an idea that really does have to be enforced. Because otherwise, you could have people working for less, and working every hour of the day and still not even being able to afford to live.

However, I do think that this penalty news is great, because there are ways and means of getting around NMW, and it's not fair to those who work so hard to earn their wage. I would also like to see more rules relating to those working overseas, because currently it's a cheaper option for businesses to hire foreign workers, when British workers may well be WILLING to work for less, but they're not legally allowed to do so.

I have nothing against foreign workers, but it should be a level playing field to give everyone an equal chance.
 
P

Pete Brindle

New Member
Great idea. Even those on minimum wage have to work ridiculous hours to live a good quality of life, so goodness knows what those living on less have to cope with.
 
Gemma Rowlands

Gemma Rowlands

New Member
Great idea. Even those on minimum wage have to work ridiculous hours to live a good quality of life, so goodness knows what those living on less have to cope with.
Yes. My partner works for minimum wage at the moment, and he has to work so much more than me to be able to afford the things he needs (and wants, on occasion). It hardly seems fair really.
 
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Pete Brindle

New Member
Yes. My partner works for minimum wage at the moment, and he has to work so much more than me to be able to afford the things he needs (and wants, on occasion). It hardly seems fair really.
It always seems that the people who work the hardest earn the least as well. For example a cleaner on their feet all day, or waiting staff, may get paid minimum wage, while you have business owners who delegate anything they don't want to do on hundreds for the same hour.
 
Gemma Rowlands

Gemma Rowlands

New Member
It always seems that the people who work the hardest earn the least as well. For example a cleaner on their feet all day, or waiting staff, may get paid minimum wage, while you have business owners who delegate anything they don't want to do on hundreds for the same hour.
Agreed. I had a friend who used to do 14 hour waitressing shifts and she was shattered every time she got home. It just made me wonder whether it was all worth it!
 
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Pete Brindle

New Member
Agreed. I had a friend who used to do 14 hour waitressing shifts and she was shattered every time she got home. It just made me wonder whether it was all worth it!
I also find that a lot of these jobs don't give adequate breaks, either. Some people are too thankful to have a job at all so they don't even bother to complain or query it!
 
Gemma Rowlands

Gemma Rowlands

New Member
I also find that a lot of these jobs don't give adequate breaks, either. Some people are too thankful to have a job at all so they don't even bother to complain or query it!
Actually a restaurant near where I live recently closed down because they were reported for having unacceptable working conditions for their staff, including inadequate breaks. And they couldn't afford to hire extra staff or pay their current staff enough, so that was that!
 
P

Pete Brindle

New Member
Actually a restaurant near where I live recently closed down because they were reported for having unacceptable working conditions for their staff, including inadequate breaks. And they couldn't afford to hire extra staff or pay their current staff enough, so that was that!
That's a shame in a way. But when you're building a business you should always base your business plan on hiring people with fair (and legal) working conditions, or things are never going to work.
 
Gemma Rowlands

Gemma Rowlands

New Member
That's a shame in a way. But when you're building a business you should always base your business plan on hiring people with fair (and legal) working conditions, or things are never going to work.
Exactly - I was talking about the importance of having a business plan on here a few weeks back, and this is a key reason why.
 
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