UK firms put to shame for escaping minimum wage laws

The British government has publicly announced a list of 115 business firms that are not adhering the minimum wages act. As per the National Minimum Wages (NMW) norms, these companies together owe about £389,000 ($598,500), according to the UK government. One fashion company, the Monsoon Accessorize topped the list among offenders. The UK government has decided to take action against them and may order them to reimburse their employees. It could also attract imposition of a fine for the offenders. The UK government will introduce a new National Living Wage in April 2016.

The minimum wages are £6.70 ($10.30) per hour for people with over 21 years of age. The UK government is under the impression that publicizing the names of companies, which are evading paying minimum wages to staff, will be ashamed of themselves as their names are made public. This will also prevent others from doing the same offense.

The fashion company Monsoon Accessorize alone owes £104,500 ($161,000) to its 1,438 workers. Responding to the latest development, Monsoon issued a statement saying it was "pleased the issue has been identified and has already taken prompt action to remedy it."

The UK government raised National Minimum Wage (NMW) to £6.70 per hour on 1 October 2015. The hourly wages vary depending upon the circumstances of their workers. The government has also started a campaign on the national minimum wage to create more awareness in the industry and business segments.

Nick Boles, UK Business Minister, said: "We're determined that everyone who is entitled to the National Minimum Wage receives it. Next April, we will introduce a new National Living Wage which will mean a £900 a year pay rise for someone working full time on the minimum wage and we will enforce this equally robustly."

Meanwhile, TUC, the biggest trade union in the UK, said that the list is just a tip of the iceberg as only a quarter of names have been revealed. The trade union has prepared a list including 250,000 workers are deprived of minimum wages.

The UK government reviews the National Minimum Wage (NMW) every year and implemented from October onwards. Low Pay Commission takes care of the NMW. The main rate for workers in the age group of over 21 is £6.70 per hour. For workers in age group of 18-21 is £5.30 per hour. For those in the age bracket of 16-17 is £3.87 per hour. For workers over 25 will come under national living wage and are entitled to receive £7.20 per hour from April 2016.

Frances O'Grady, General Secretary, TUC, said: "I am particularly saddened to see Monsoon Accessorize acting in breach of the law. A large film with thousands of employees has no excuse for not having proper systems in place to ensure staff getting their legal wages."