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Welsh Employers ‘Named and Shamed’ for Paying Less Than Minimum Wage

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Today 10 Welsh businesses are being named for breaking national minimum wage law.

The breaches took place between 2012 and 2018. Following investigations by Her Majesty’s Revenue and Customs, a total of £78k was found to be owed to 171 workers.

Named employers have since been made to pay back what they owed, and were fined an additional £100k, showing it is never acceptable to underpay workers.

The UK Government recently gave millions a pay rise by increasing National Living Wage and National Minimum Wage rates in April 2021. The rise means someone working full time on the National Living Wage will be taking home £5,400 more annually than they were in 2010. Every single UK worker is entitled to the National Minimum Wage, no matter their age or profession.

Whilst not all minimum wage underpayments are intentional, it has always been the responsibility of all employers to abide by the law. Clear guidance is available on gov.uk, which all employers should check.

Minimum wage breaches can occur when workers are being paid on or just above the minimum wage rate, and then have deductions from their pay for uniform or accommodation.

The employers named today previously underpaid workers in the following ways: 

  • Failing to pay workers for all the time they had worked, such as when they worked overtime
  • Paying the incorrect apprenticeship rate
  • Failed to pay the uprated minimum wage

Business Minister, Paul Scully, said: 

“Welsh employers can’t take their eye off the ball when it comes to upholding workers’ rights.

“There is never an excuse to short-change workers and paying the minimum wage isn’t optional.

“It’s up to all employers in Wales, including those on this list, to check government guidance and pay workers properly.”

Employers who pay workers less than the minimum wage have to pay back arrears of wages to the worker at current minimum wage rates. They also face hefty financial penalties of up to 200% of arrears – capped at £20,000 per worker – which are paid to the government. Since 2015 the government has ordered employers to repay over £100 million to 1 million workers.

A significant number of the minimum wage breaches identified today affected those on apprenticeships. Today the Government has published new guidance to ensure employers know exactly what they need to do to pay their apprentices, and all workers, correctly.

The Government is committed to protecting workers’ rights and while the vast majority of businesses follow the law and uphold workers’ right, the publication of this list serves as a reminder to employers that the government will take action against those who fail to pay their employees the minimum wage.

As well as advice for employers, HMRC offer advice for all workers on how to ensure they are being paid correctly via the Check your pay website.

Chair of the Low Pay Commission Bryan Sanderson said:

“These are very difficult times for all workers, particularly those on low pay who are often undertaking critical tasks in a variety of key sectors including care. The minimum wage provides a crucial level of support and compliance is essential for the benefit of both the recipients and our society as a whole.”

The welsh employers being named and shamed can be found below:

  • Millenium Care Ltd, Neath Port Talbot, SA11, failed to pay £28871.77 to 40 workers
  • Menai Meats (Wales) Limited, Gwynedd council, L55, failed to pay £23558.16 to 34 workers
  • 7 to 10 Food & Wine Ltd, Cardiff, CF3, failed to pay £9573.74 to 2 workers
  • M Francis (Cardiff) Limited, trading as Minster Cleaning Services, Cardiff, CF23, failed to pay £4793.14 to 69 workers
  • Chilton Motors Limited, Pembrokeshire, SA71, failed to pay £4171.87 to 1 worker
  • Mr Hasan Yalcin and Mrs Sultan Yalcin, trading as Bridge Kebabs (now under new ownership), Isle of Anglesey, LL59, failed to pay £3723.68 to 2 workers
  • Meadow Street Motors Limited, trading as D.L. Motors, Swansea, SA1, failed to pay £956.26 to 1 worker
  • Teifi Tots Limited, Carmarthenshire, SA38, failed to pay £939.55 to 17 workers
  • Automec Swansea Limited – Dissolved 2 April 2019, Swansea, SA1, failed to pay £892.12 to 1 worker
  • Walnut Tree Garage Limited, trading as JP Tod Commercials, Monmouthshire, NP7, failed to pay £559.73 to 4 workers
Business News Wales