Firms breaching minimum wage regulations to be named
Those companies deliberately breaching laws governing minimum
wages will be publicly named and shamed in line with a new
government scheme.
Edward Davey, Employment Relations Minister, announced that,
from this month on, companies flouting the rules would be included
in press notices released by the Department for Business,
Innovation and Skills (BIS).
Mr Davey said, “Bad publicity can be a powerful weapon in the
fight against employers who try to cheat their workers and their
competitors.
“Their reputation can be badly damaged if they are seen to be
flouting the law,” he added.
The policy document points out that the aim of the new scheme is
to deter companies who 'may otherwise be tempted to flout' minimum
wage laws.
It also says that the government recognises that 'some employers
are more likely to respond to the social and economic sanctions
that may flow from details of their payment practices being made
public, than from financial deterrents.'
The government has said that it hopes introducing the new policy
will encourage increasing numbers of workers who have not received
the minimum wage to come forward. It also specified that the new
scheme is not an alternative to prosecution.