Hospitality Employers are being warned of the dangers of not paying the National Minimum Wage, following the publication of the largest list ever of employers named and shamed by the government.

A number of hospitality businesses featured in a list of almost 200 employers who failed to pay their employees the legal minimum.

The 197 companies on the list owed a combined £465,291 in arrears to workers, all of which has since been repaid.

Since the naming and shaming scheme was introduced in October 2013, 687 employers have been named and shamed, with total arrears of more than £3.5 million.

Hospitality companies on the list included a South London hotel that owed £99,000 to 30 employees and a hotel in Scotland that owed over £2,000 to 6 workers.

Minimum rates of pay

It is an employer’s responsibility to be aware of the different minimum wage rates depending on the circumstances of their workers – and to make sure all eligible workers are paid at least the minimum rate they are entitled to.

Employers have a duty to be aware of the different legal rates for the National Minimum Wage. The current minimum wage rates are:

  • National Living Wage (25 years and over) - £7.20 per hour
  • adult rate of National Minimum Wage (21 years and over) - £6.70 per hour
  • 18 to 20-year olds - £5.30 per hour
  • 16 to 17-year olds - £3.87 per hour
  • apprentice rate - £3.30 per hour

The apprentice rate applies to apprentices aged 16 to 18 years and those aged 19 years and over who are in their first year. All other apprentices are entitled to the National Minimum Wage rate for their age.

The National Living Wage for workers aged 25 and over was introduced in April this year, which has meant a pay rise of more than £900-a-year for someone previously working full time on the National Minimum Wage. For workers under the age of 25, the National Minimum Wage still applies.

To discuss the issues raised in this article, please contact a member of our Hotels, Tourism & Leisure team or our Payroll services team.

 
 
 
 
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