10 Best Excuses For Underpaying Staff

Published / Last Updated on 26/01/2017

10 Best Excuses For Underpaying Staff.

HMRC has published the 10 best excuses used by employers for underpaying their employees i.e. not paying the National Minimum Wage.

On 1st April 2017, the National Minimum Wage (below 25) and the National Living Wage (over 25s) are set to rise to:

  • National Living Wage rate aged 25 years and over increases by 30p to £7.50 per hour
  • National Minimum Wage for 21 to 24 year olds increases by 10p to £7.05 per hour
  • National Minimum Wage for 18 to 20 year olds increases by 5p to £5.60 per hour
  • National Minimum Wage for 16 to 17 year olds increases by 5p to £4.05 per hour
  • National Minimum Wage Apprentice Rate increases by 10p to £3.50 per hour

Last year, HMRC’s enforcement budget was increased from £13 million to £20 million with more compliance inspectors recruited and this month they published their most ‘bizarre’ excuses to date:

  • The employee wasn’t a good worker so I didn’t think they deserved to be paid the National Minimum Wage.
  • It’s part of UK culture not to pay young workers for the first 3 months as they have to prove their ‘worth’ first.
  • I thought it was ok to pay foreign workers below the National Minimum Wage as they aren’t British and therefore don’t have the right to be paid it.
  • She doesn’t deserve the National Minimum Wage because she only makes the teas and sweeps the floors.
  • I’ve got an agreement with my workers that I won’t pay them the National Minimum Wage; they understand and they even signed a contract to this effect.
  • My accountant and I speak a different language – he doesn’t understand me and that’s why he doesn’t pay my workers the correct wages.
  • My workers like to think of themselves as being self-employed and the National Minimum Wage doesn’t apply to people who work for themselves.
  • My workers are often just on standby when there are no customers in the shop; I only pay them for when they’re actually serving someone.
  • My employee is still learning so they aren’t entitled to the National Minimum Wage.
  • The National Minimum Wage doesn’t apply to my business.

Comment

As employers or employees we have all come across colleagues that are not ‘up to the job’ or ‘swinging the lead’ or always late or absent, there are equally employers who abuse their position and treat hard working employees with contempt.

The law is the law and is there to protect all parties.  Minimum wage laws are to protect hard working employees but there are also laws as to how an employer can legitimately follow a disciplinary process to rid themselves of ‘difficult’ employees that do not meet basic standards via training, improvement reviews or ultimately verbal warnings, written warnings and final warnings followed by dismissal.

Explore our Site

About
Advice
Money MOT
T and C