The worst excuses for not paying National Minimum Wage

By KMC Human Resources

13 Oct 2014

As of 1st October, the National Minimum Wage (NMW) for adults (workers aged 21 and over) rose to £6.50 per hour – a 19 pence increase on the previous rate set by the Government and the biggest rise since 2008.

By Karen Credie, KMCHR.

The new rates of pay for all categories of workers are as follows:

• £6.50 for over 21 year olds

• £5.13 for 18-20 year olds

• £3.79 for under 18s

• £2.73 for apprentices

Overall, it is estimated that over 1 million workers in the UK will benefit as a result of the increased rates, with some seeing their wages rise by up to £355 per year.

It goes without saying that paying employees a rate of pay in line with the NMW is a legal requirement. Employers who are found to have breached NMW rules can face hefty fines and will also be required to pay any backdated salary payments.

Despite the seriousness of National Minimum Wage laws, businesses are found to be in breach of the rules by HMRC each year. In 2013, 26,000 employees were found to have been receiving too little pay and a total of £4 million had to be paid in back pay.

To mark the 15th anniversary of the introduction of the NMW this year, HMRC released a list of the worst excuses given by employers for infringements of minimum pay rates. These included statements from employers such as “I know I am paying them too little, but they are happy to work for this amount because they are getting experience” and “I don’t think my workers know anything about the NMW because they don’t speak English.”

It is worth pointing out that ignorance is not an excuse for failing to meet National Minimum Wage requirements. Employers face workforces of increased flexibility and nationality – with part time workers, workers from the EU, workers on study leave etc – and it can be easy to overlook someone’s rate of pay and to ensure it is up to date with the current rates. Whether deliberately or inadvertently, however, any breach is still against the law and taking preventative action by periodically checking all of your workers’ rates of pay is advisable.

Where rates of pay are to be reviewed as a result of the NMW increase, especially across a sizable proportion of the workforce, this can present a useful opportunity for employers to review employees’ terms as a whole. Employment contracts can often go without review for many years at a time, and a periodic ‘once over’ can allow amendments to be made, bringing terms up to date. This is not something that should be done lightly, however, as there are of course rules protecting employees regarding any changes to their contracts of employment. For further advice on this, NMW requirements or indeed any other aspect of HR or employment law, please get in touch.

Latest news

1

College restaurant honoured with top culinary award from prestigious chefs’ guild Karen Lilley Front Of House Lecturer David McKown David Lyon Scholars Manager And Blackburn College Principal Dr Fazal Dad

College restaurant honoured with top culinary award from prestigious chefs’ guild

10 Jun 2025

2

Cosmetic manufacturer lets new unit on Frontier Park, Burnley Badgequo have agreed to let the site on Frontier Park

Cosmetic manufacturer lets new unit on Frontier Park, Burnley

10 Jun 2025

3

SQ Digital celebrates 25 years and enters new era with CEO appointment Kamal Essa

SQ Digital celebrates 25 years and enters new era with CEO appointment

09 Jun 2025

4

New chair appointed to Atlas BFW Management Graham Cowley

New chair appointed to Atlas BFW Management

09 Jun 2025

5

Napthens makes key appointments to further growth strategy of newly appointed managing director Napthens appointments Jayna Mistry, Onyeka-Obedi and Rebecca Rhodes

Napthens makes key appointments to further growth strategy of newly appointed managing director

09 Jun 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Sub36 Networking
Sub36 Social1200pxandi Lewis
Networking
11 Jun 2025

Sub36 Networking

Mytton Fold Hotel , Blackburn , BB6 8AB

09:30 - 11:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200pxtrident 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

LBV123 July/August Launch Event
Lancashire Business View magazine launch
Networking
16 Jul 2025

LBV123 July/August Launch Event

Burnley College Industry Hub, Burnley, BB120AN

08:30 - 10:30

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

The Business Network Central & East Lancashire
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

The Business Network Central & East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Preston Freelancer Meet-Up
LBV Hub Networking
12 Jun 2025 - 12 Jun 2025

Preston Freelancer Meet-Up

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron
BU-June-Event-BRAD-1.jpg.jpg
LBV Hub Networking
18 Jun 2025 - 18 Jun 2025

Midnight Oil: The Entrepreneur’s Journey: Scaling Strategies with Brad Waldron

Blackpool Football Club, Bloomfield Rd, Seasiders Way, Blackpool, FY1 6JJ

08:30 - 11:30

Chamber Business Lunch – June
Chamber Logo1.png.png
LBV Hub Networking
20 Jun 2025 - 20 Jun 2025

Chamber Business Lunch – June

Lancaster House Hotel, Bailrigg, Lancaster, LA1 4GL

11:00 - 13:30

90 day Business Planning Workshop
LBV Event Header.png.png
LBV Hub Seminars
20 Jun 2025 - 20 Jun 2025

90 day Business Planning Workshop

Bolton Arena, Arena Approach, Horwich, BL6 6LB

09:00 - 16:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin