Government ‘names and shames’ Kettering business for not having paid minimum wage

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A Kettering firm has been named by the Government as not having paid the minimum wage to some of its staff.

Callum Austin Ltd, trading as Jason Austin Hairdressers, neglected to pay £1,899.66 to two workers.

The Department for Business, Innovation and Skills has released the information today (Thursday, January 15).

The company is one of 37 named and shamed by ministers in a bid to provide an additional deterrent to firms not paying workers the national minimum wage (NMW).

Between them they owe workers a total of over £177,000 in arrears and have been charged financial penalties totalling over £51,000.

Kettering MP Philip Hollobone said: “The present Government has made big steps to enforce minimum wage legislation. I am sure employers across the NT area will take note of the action which has been taken in one local case and will seek to ensure that they are paying at least the minimum wage to their employees.”

Business minister Jo Swinson added: “Paying less than the minimum wage is illegal, immoral and completely unacceptable. If employers break this law they need to know that we will take tough action by naming, shaming and fining them as well as helping workers recover the hundreds of thousands of pounds in pay owed to them.

“We are also looking at what more we can do to make sure workers are paid fairly in the first place.

“As well as being publicly named and shamed, employers that fail to pay their workers the national minimum wage face penalties of up to £20,000. We are legislating through the Small Business, Enterprise and Employment Bill so that this penalty can be applied to each underpaid worker rather than per employer.”

New laws were passed in October 2013 to make it easier to name those employers not paying the NMW.

The current rate is £6.50 an hour. The rates are lower for 18 to 20-year-olds (£5.13 an hour) and under-18s (£3.79 an hour). Apprentices have to be paid at least £2.73 an hour.