Excuses for underpayment of wages can be ‘ridiculous’

HM REVENUE and Customs (HMRC) has said some employers come up with “absurd and ridiculous” excuses to deny their workers the minimum wages they are legally entitled to.

The UK government department, responsible for the enforcement of the National Minimum Wage Act, said contractual agreements and the learning process of workers are two of the most commonly cited excuses for non-payment of minimum wages.

According to British law, a worker older than 23 years shall be paid at least £8.91 per hour, while those aged 21-22 years are entitled to a minimum of £8.36 an hour. Employees in the age group of 18-20 years should be paid at least £6.56 an hour, the minimum hourly rate for those younger than 18 years is £4.62. An apprentice shall not be paid less than £4.30 an hour.

In a press release issued on Tuesday (17), HMRC said some “less scrupulous businesses” cited communication gaps caused by languages for not paying their workers they should be legally given.

According to it, an employer’s excuse was, “my accountant and I speak a different language - he does not understand me, and that is why he does not pay my workers the correct wages”.

While some businesses thought it is okay not to give the minimum wages to young non-British workers, others felt “it is part of the UK's culture not to pay young workers for the first three months as they have to prove their ‘worth’ first”.

The explanations like “she does not deserve the National Minimum Wage because she only makes the teas and sweeps the floors,” are ridiculous, it said.

HMRC director (individuals and small business compliance), Steve Timewell, said underpayment existed in the UK, although it is not a trend in the country.

“The majority of UK employers pay their workers at least the National Minimum Wage”, he said, clarifying that the lame excuses were provided to enforcement officers by “less scrupulous businesses.

“Being underpaid is no joke for workers, so we always apply the law and take action. Workers cannot be asked or told to sign away their rights”.

He said HMRC reviews every complaint made about the minimum wage and warned that any employer “deliberately or unapologetically underpaying their staff will face hefty fines and other enforcement action.”