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

Beever and Struthers advise on £1.5bn funding for 2,000 new social homes a year John Jones

Beever and Struthers advise on £1.5bn funding for 2,000 new social homes a year

03 Jul 2025

2

Airframe Designs aligns with US programme for additive manufacturing growth Additive manufacturing technology unit At Airframe Designs

Airframe Designs aligns with US programme for additive manufacturing growth

03 Jul 2025

3

Panache Cruises on course for further growth with support from Rosebud James Cole

Panache Cruises on course for further growth with support from Rosebud

03 Jul 2025

4

Lancashire emerges as key player in UK's Defence and Tech Sector Mo Isap Chair Of The Lancashire Business Board Nick Miles National Cyber Force Deputy Director For Samlesbury Annette Weekes Representative Of The NWRDSC

Lancashire emerges as key player in UK's Defence and Tech Sector

03 Jul 2025

5

Report shows impact of BAE Systems in Lancashire BAE Systems Radar

Report shows impact of BAE Systems in Lancashire

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

LBV123 July/August Launch Event

Burnley

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

The Marketing Metrics that Matter – July 4
LBV Hub Seminars
04 Jul 2025 - 04 Jul 2025

The Marketing Metrics that Matter – July 4

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

08:30 - 11:00

Tri-Site Survey Equipment Showcase
unnamed (2).jpg.jpg
LBV Hub Seminars
09 Jul 2025 - 09 Jul 2025

Tri-Site Survey Equipment Showcase

Crow Wood Hotel, Burnley, BB12 0RT

09:30 - 16:00

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers
Champagne-Jewellery 10 07 25_page-0001.jpg.jpg
LBV Hub Awards
10 Jul 2025 - 10 Jul 2025

Blackburn Cathedral hosts Champagne and Diamonds Event with Ainsworth Jewellers

Blackburn Cathedral, Blackburn, BB1 5AA

18:00 - 20:30

Choose Chorley for Business - Talent Reimagined Business Breakfast
talentreimaginedbb.png.png
LBV Hub Seminars
10 Jul 2025 - 10 Jul 2025

Choose Chorley for Business - Talent Reimagined Business Breakfast

Strawberry Fields Digital Hub, Chorley, PR71PS

08:00 - 10:30

Shaping Preston's future by remembering its past
1750160034867.png.png
LBV Hub Networking
16 Jul 2025 - 16 Jul 2025

Shaping Preston's future by remembering its past

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 20:30

Chamber Summer BBQ
LBV Hub Social
17 Jul 2025 - 17 Jul 2025

Chamber Summer BBQ

The Borough, Dalton Square, Lancaster, LA1 1PP

17:30 - 20:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

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