2015 will see bigger fines for minimum wage cheats

Employers failing to recognise the national minimum wage will find 2015 a tough year to escape without serious fines, according to a payroll expert for one of the North West region’s leading accountancy companies.

Lisa Kennery, payroll manager of Blackburn-based business advisory and accountancy group Pierce, is urging the region’s employers to pay more than lip service to the government’s National Minimum Wage rates and suggests that the naming and shaming of employers in 2014 is just the tip of the iceberg as the Department for Business, Innovation and Skills ramps up its efforts to punish offenders; a process that has already seen dozens of companies named and fined heavily for breaching employment law by paying workers less than the minimum wage.

Kennery, a regular blogger on payroll and pensions matters, claims that unscrupulous employers will have nowhere to hide in 2015. She commented: “The government has already made an example of over 50 employers, who have been made to pay arrears to their employees and been on the receiving end of fines. These penalties can total up to £20,000 and in extreme cases, prosecution could follow, so it simply doesn’t make sense for any business to try to avoid paying employees the National Minimum Wage.

“The Department for Business Innovation and Skills has shown its intent and 2015 promises an even greater purge as more disadvantaged employees become aware of the Pay and Work Rights Helpline, which, in effect, is a telephone hotline for whistleblowers, allowing employees to report Minimum Wage abuses in strict confidence.”

The government’s Small Business, Enterprise and Employment Bill will ensure that the strict penalties in force will be applied for each case of an underpaid worker and not per employer. Business Minister, Jo Swinson, speaking last month, urged employees to report abuses of the National Minimum wage but also encouraged employers to seek advice to ensure they are aware of their obligations. She said: “All workers are entitled to the minimum wage. This isn’t a generous gesture by employers, this is the law.”

Lisa Kennery has advised businesses to seek advice, either from payroll specialists or via the Government’s helpline, if they are unsure about their obligations. She added: “Of course, unscrupulous employers looking to flout the law are unlikely to seek advice but the vast majority of businesses will and those who have professional advisers will be fully aware of their responsibilities and minimum wage rates, which will increase annually in October of each year. The minority of businesses attempting to circumvent the law will find 2015 a very unforgiving year and a potentially expensive one!” From October 2014 the National Minimum Wage rates are: age 16-17, £3.79; 18-20, £5.13 and 21 and over £6.50. For apprentices under the age of 19, or in the first year of an apprenticeship, the rate is £2.73 per hour.

Enjoyed this? Read more from Pierce CA Ltd

Latest news

1

fulfilmentcrowd reports record-breaking performance LeeThompsonfulfilmentcrowd

fulfilmentcrowd reports record-breaking performance

20 Dec 2024

2

Record year for Grant Thornton Northern deals team The team

Record year for Grant Thornton Northern deals team

20 Dec 2024

3

New partner among family team hires as Brabners strengthens personal offer Cara Nuttall Chris Fairhurst And Hannah Saxe

New partner among family team hires as Brabners strengthens personal offer

20 Dec 2024

4

Amazing Accrington bring in almost £400k in funding to Hyndburn Clayton Boxing Club press.jpg.jpg

Amazing Accrington bring in almost £400k in funding to Hyndburn

19 Dec 2024

5

BAE Systems solar powered aircraft achieves new stratospheric success The flight

BAE Systems solar powered aircraft achieves new stratospheric success

19 Dec 2024

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
The Lancashire Festival of Business
FOB 315
Exhibitions
30 Jan 2025

The Lancashire Festival of Business

Impact Conferencing, Burnley, BB12 6QP

09:30 - 16:00

Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

Preston Tech Connection - January Meet-Up
Nov Preston Tech Connection event banner-4.png.png
LBV Hub Networking
15 Jan 2025 - 15 Jan 2025

Preston Tech Connection - January Meet-Up

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

R.I.S.E. and Shine
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
16 Jan 2025 - 16 Jan 2025

R.I.S.E. and Shine

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

08:45 - 11:00

The Business Network Central & East Lancashire
LBV Hub Networking
16 Jan 2025 - 16 Jan 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

LBV120 Magazine Launch Event
DSC9389
Networking
17 Jan 2025

LBV120 Magazine Launch Event

Lancastrian Suite, Town Hall, Chorley, PR7 1DP

08:30 - 10:30

Red Rose Awards 2025
Red Rose Awards 2025
Awards
13 Mar 2025

Red Rose Awards 2025

Winter Gardens Blackpool

18:00 - 11:59

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV118 Online Graphic
Subscribe now

Weekly news bulletin