The British Woodworking Federation Group

Building firms among those named and shamed for underpaying workers

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20/01/2015

The government has released a list of 37 employers who failed to pay workers the minimum wage as part of a plan to ‘name and shame’ law-breaking businesses under rules that came into effect last October.

Building firms among those named and shamed for underpaying workersThe list of companies includes an Edinburgh joinery business which neglected to pay £3,373.19 to 4 workers, and a Dundee building firm, which neglected to pay £2,345.85 to 3 workers. Neither of the companies in question are BWF members.

The employers on the government list were investigated by HMRC after members of staff called a free helpline to report they were being underpaid. The businesses on the list owe a combined total of over £177,000 in arrears and had been charged financial penalties totaling over £51,000. It is the single biggest list of companies exposed by the Department for Business, Innovation and Skills.

BWF Policy Executive Matt Mahony commented:

"No company wants to have to deal with the impact to their reputation of being publicly named and shamed in the national media. On top of this, employers that fail to pay their workers the National Minimum Wage face penalties of up to £20,000 as well as having to ensure that the workers recover the pay owed to them.

“It is crucial that joinery businesses ensure that their payment practices are up to date as companies large and small risk being named and fined. Even seemingly minor clerical errors can result in sanctions.

“Retail giant H & M were flagged up after underpaying 540 of their workers by an average amount of just £4.82, apparently due to errors regarding time-logging. Service station operator Welcome Break was also named and shamed after an employee complained to the HMRC that her pay rate had not been increased correctly upon reaching the age of 21.”

The national minimum wage is £6.50 an hour.

The rate for 18 to 20-year-olds is £5.13 an hour.

The rate for those aged 16 and 17 is £3.79 an hour.

The apprentice minimum wage (for apprentices aged 16 to 18 year-olds and those aged 19 in their first year) is £2.73 an hour.

These rates may change from October 2015.

All BWF members have signed up to a rigorous set of standards of workmanship, company stewardship and environmental disciplines through the BWF Code of Conduct. The Code sets out the principles of good practice for a woodworking or joinery business.

The BWF’s employment, legal and tax guidance makes up part of our business support for woodworking companies. BWF members needing advice on tax and employment matters can use our free-to-members business support helplines which includes legal assistance from Wedlake Bell, and employment advice from Croner. They can find further resources in this area under publications, where we have a number of guides and template documents including draft contracts of employment.

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Member of Construction Products Association
National Specialist Contractors Council
Passive Fire Protection Federation
CITB
The Alliance for Sustainable Building Products