Bizarre Excuses for Not Paying the Minimum Wage

HMRC has revealed some of the more unusual reasons given by employers for not paying their employees the legal wage. In 2020-21, HMRC helped workers across the UK recover more than £16 million in pay which was due to them and issued more than £14 million in penalties.

One employer claimed that a worker wasn’t a good worker so didn’t think they deserved to be paid the National Minimum Wage (NMW)! Another employer shockingly said that they had an agreement with their workers not to pay them the NMW; they understand, and they even signed a contract to this effect!

The current NMW and National Living Wage (NLW) rates came into effect on 1 April 2021. The NLW of £8.91 is the minimum hourly rate that must be paid to those aged 23 or over. The hourly rate of the NMW (for 21-22 year olds) is £8.36. The rate for 18-20 year olds is £6.56 and the rate for workers above the school leaving age but under 18 is £4.62. The apprentice rate is £4.30.

HMRC’s Director of Individuals and Small Business Compliance said:

‘The majority of UK employers pay their workers at least the National Minimum Wage, but this list shows some of the excuses provided to our 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.’

HMRC investigates all complaints of employers failing to pay minimum wage. There is an online form on GOV.UK that can be used to complain about not being paid the NMW.