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Worst excuses for not paying staff minimum wage revealed

The government has published 10 of the most bizarre excuses being used by company bosses for underpaying workers the National Minimum Wage.

The list has been released to coincide with its new £1.7 million awareness campaign to encourage workers to check their pay to ensure they are receiving at least the statutory minimum ahead of the national minimum and national living wages rising on 1 April 2017.

By law, all workers must be paid at least £7.20 an hour if they are aged 25 years and over, or the National Minimum Wage rate relevant to their age if they are younger.

Investigators from HMRC have revealed some of the worst excuses given to them by employers caught out for underpaying staff, which include:

  1. The employee wasn’t a good worker so I didn’t think they deserved to be paid the National Minimum Wage.
  2. It’s part of UK culture not to pay young workers for the first three months as they have to prove their ‘worth’ first.
  3. I thought it was ok to pay foreign workers below the National Minimum Wage as they aren’t British and therefore don’t have the right to be paid it.
  4. She doesn’t deserve the National Minimum Wage because she only makes the teas and sweeps the floors.
  5. I’ve got an agreement with my workers that I won’t pay them the National Minimum Wage; they understand and they even signed a contract to this effect.
  6. My accountant and I speak a different language – he doesn’t understand me and that’s why he doesn’t pay my workers the correct wages.
  7. My workers like to think of themselves as being self-employed and the National Minimum Wage doesn’t apply to people who work for themselves.
  8. My workers are often just on standby when there are no customers in the shop; I only pay them for when they’re actually serving someone.
  9. My employee is still learning so they aren’t entitled to the National Minimum Wage.
  10. The National Minimum Wage doesn’t apply to my business.

Margot James, business minister, commented:

“There are no excuses for underpaying staff what they are legally entitled to. This campaign will raise awareness among the lowest paid in society about what they must legally receive and I would encourage anyone who thinks they may be paid less to contact Acas as soon as possible.

“Every call is followed up by HMRC and we are determined to make sure everybody in work receives a fair wage.”

From 1 April 2017, the National Living Wage rate for those aged 25 years and over will increase by 30p to £7.50 per hour.

For the National Minimum Wage the rate will increase by 10p to £7.05 per hour for 21 to 24 year olds, 5p to £5.60 per hour for 18 to 20 year olds, 5p to £4.05 per hour for 16 to 17 year olds, and 10p to £3.50 per hour for the apprentice rate.


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