HMRC slams ‘absurd excuses’ from employers who underpaid workers

In an effort to further deter businesses from failing their duties in paying minimum wage, HM Revenue & Customs (HMRC) has released a list of what it called “absurd excuses” used by businesses who were caught underpaying employees.

Many employers justified their failure to pay minimum wage by citing false exceptions to the law.

Training employees, claiming their business was exempt, or creating unlawful workarounds such as having workers on “standby” in a business premises unless they are actively serving customers were three such examples.

Others used the employee’s standard of work, their citizenship status, or language barriers to excuse themselves from properly compensating employees.

One employer claimed to have instituted contracts with workers who agreed to a lower level of pay.

Steve Timewell, director of individuals and small business compliance at HMRC, reminded workers and businesses alike that employees cannot be asked or told to sign-away their rights.

“HMRC reviews every complaint made about the minimum wage, so if you think you are being short-changed, or are a business that is unsure of the rules or needs help to get things right, get in touch and we will help you. But any employer deliberately or unapologetically underpaying their staff will face hefty fines and other enforcement action,” Mr Timewell said.

This release of employer excuses comes two weeks after HMRC published a list of 191 businesses that failed to pay minimum wage, in an attempt to “name and shame” as a warning to others.

Mr Timewell said these efforts were intended to stop unscrupulous businesses, and also to remind workers of their rights and assist employers who might need help navigating the law.

The National Minimum Wage hourly rates are currently:

• £8.91 - Age 23 or over (National Living Wage)
• £8.36 - Age 21 to 22
• £6.56 - Age 18 to 20
• £4.62 - Age under 18
• £4.30 - Apprentice

HMRC urged workers to check the hourly rate of pay they are actually getting, and to also check any deductions or unpaid working time.

Anyone not being paid what they are entitled to can complain though a secure government portal, or speak with someone in confidence by phoning the Acas Pay and Work Rights Helpline on 0300 123 1100.

Employers can also contact the Acas Helpline for free help and advice or access the government’s minimum wage calculator for assistance.