National security firm, Total Security Services Ltd has been named and shamed by the government for failing to pay employees the national minimum wage.

The firm, which has six offices across the UK has topped the current list of 92 minimum wage offenders. Other companies on the list of offenders include nurseries, dental practices, hairdressing salons and recruitment businesses.

Following an investigation by HM Revenue & Customs, it was found that Total Security Services owes 2,519 employees more than £1.7 million.

Since October 2013 when the Government revised the rules allowing it to publicly name companies that have been found to breach national minimum wage legislation, there is a total of 490 employers named and shamed under the scheme, with total arrears above £3 million.

Business Minister, Nick Boles has said “as a one nation government on the side of working people we are determined that everyone who is entitled to the national minimum wage receives it”.  In addition to financial penalties, since the Government’s ‘name and shame policy’ has been introduced, employers need to be wary of reputational damage through non-compliance with national minimum wage legislation.

For some employers, compliance is complicated by issues such as on-call time, travelling time and piece work.

The current rates of national minimum wage are as follows:

  • Adult (21 and over) – £6.70 an hour.
  • Youth development (18 to 20) – £5.30 an hour.
  • Young workers (under 18) – £3.87 an hour.
  • Apprenticeship – £3.30 an hour.

Additionally, from April 2016, the national living wage will be £7.20 an hour for workers aged 25 and older.

If you would like to discuss any of the issues raised in this blog, please do not hesitate to contact a member of our Employment department.

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