Ten outrageous excuses for not paying the minimum wage
The government has revealed ten of the most outrageous excuses employers have used for failing to pay their workers the national minimum wage (NMW). What are they?
The ten worst excuses for flouting NMW laws that have been given by employers to HMRC enforcement officers are:
- “She does not deserve the NMW because she only makes the teas and sweeps the floors.”
- “The employee was not a good worker, so I did not think they deserved to be paid the NMW.”
- “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.”
- “My employee is still learning so they are not entitled to the NMW.”
- “It is part of UK culture not to pay young workers for the first three months as they have to prove their worth first.”
- “The NMW does not apply to my business.”
- “I have got an agreement with my workers that I will not pay them the NMW; they understand, and they even signed a contract to this effect.”
- “I thought it was okay to pay young workers below the NMW as they are not British and therefore do not have the right to be paid it.”
- “My workers like to think of themselves as being self-employed and the NMW does not apply to people who work for themselves.”
- “My workers are often just on standby when there are no customers in the shop; I only pay them for when they are actually serving someone.”
HMRC has emphasised that workers cannot be asked or told to sign away their NMW rights, and it has referred employers to its guidance for further information on calculating the NMW.
Related Topics
-
CT61
-
Government finally confirms date for capital goods scheme reforms
The government has finally confirmed when long-awaited changes to the capital goods scheme (CGS) will take effect. The reforms, first announced as part of a wider review of VAT simplification, will come into force on 29 July 2026. What does this mean for businesses?
-
The tax‑free perks league table
You know that there are certain items or services your company can pay for without incurring a tax charge, but you’re hazy on the details. What are the most valuable tax-free perks for owner managers and which ones are you missing out on?