Government reinstates NMW defaulters' naming scheme

The naming scheme for employers who break national minimum wage (NMW) law is expected to resume in April 2020 having been paused in July 2018 to enable a full review.

The government has made some changes to the process. The arrears threshold above which employers will be considered for naming will rise to £500 from £100. It will provide more information about reasons for breaches and publish an educational bulletin for employers highlighting common reasons for underpayment. It will also publish lists of defaulters more frequently than before.

In addition the government has decided that employers offering salary sacrifice and deductions schemes will no longer be subject to financial penalties if the scheme brings payment below the NMW rate. As long as specified conditions are met only repayment of arrears will be required and employers will be exempt from the naming scheme. A key condition will be that...