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

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London. The Rt Hon Jonathan Reynolds, the Rt Hon Christopher Luxon and the Rt Hon Steve Reed (L-R Front Row) David Hammond, and Daniel Knowles

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London.

30 Apr 2025

2

Northstone secures full planning permission for 50 new homes in Edenfield Edenfield housing development

Northstone secures full planning permission for 50 new homes in Edenfield

29 Apr 2025

3

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens Dovestone Gardens launch

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens

29 Apr 2025

4

PHX Training welcomes new business leader to drive learner success Louise Kirby

PHX Training welcomes new business leader to drive learner success

29 Apr 2025

5

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire Lidl

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire

29 Apr 2025

Pc Prestonmacan Gif980x120 March
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
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

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

Lancashire Net Zero Carbon Conference

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

08:30 - 13:00

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

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

Advantage: AI – A Workshop for Business Leaders – May 2
EV-land-2025-05B.png.png
LBV Hub Seminars
02 May 2025 - 02 May 2025

Advantage: AI – A Workshop for Business Leaders – May 2

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Innovating business solutions through PhD Partnerships
30478 Skills Bootcamp open day setting.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Innovating business solutions through PhD Partnerships

University of Central Lancashire, Preston , PR1 2HE

14:30 - 15:30

Celebrating 50 years of KTP
UCLanAerialCampus.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Celebrating 50 years of KTP

University of Central Lancashire , Preston, PR1 2HE

16:00 - 18:00

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 Lbv121 Online Graphic
Subscribe now

Weekly news bulletin