Underpayment of NLW appearing to be a contentious issue for some employers.

Whilst I do not support those employers who wilfully avoid paying the National Living Wage (NLW) of which their are many I do have issue with naming and shaming when it raises contentious issues as I have found out today in the local press.

Today’s newly released report from the low pay commission names and shames 180 employers and in the main SME’s for breaching the NLW, fine many will say having read the report but it seems all is not so clear cut.

https://www.gov.uk/government/news/nearly-200-employers-named-and-shamed-for-underpaying-thousands-of-minimum-wage-workers

I have read of one employer perceived in doing exactly that in the report but then I went to the local paper to see all was not as it appeared, indeed this employer was paying the NLW but was also making deductions for loans that this company had been making to its employees to help them out and thus took there pay below the NLW.

This was a new start SME with little to no support from the Govt or able to afford an accountant.

https://www.portsmouth.co.uk/business/havant-salon-owner-disgusted-after-government-claims-it-failed-to-pay-staff-minimum-wage-1-8409282

Maybe this employer should have paid the NLW so as not to be caught out by the Govt and then with the employees consent had the loans paid back via direct debit but then hindsight is a wonderful thing.

But lets also remember whilst the Govt carry out this name shaming project they are no saints themselves as they carry out their austerity agenda and take on employees via internships for no or little pay.

 

 

 

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