Green Party: List of employers named and shamed for underpaying workers is just the tip of the iceberg

16 February 2017

The Green Party is appalled by the revelation 360 employers underpaid thousands of workers almost £1 million [1] but believes it is just the tip of the iceberg as the Government process for naming and shaming employers is extremely flawed [2].

The current system means that large, profitable companies are only being named and paying penalties for a small part of all the arrears identified by HMRC [3].

Jonathan Bartley, Green Party co-leader, said:

“Employers must be held to account if they fail to pay their workers properly. It might seem like an insignificant amount of money to the businesses but to the individual workers who need it to pay their rent or buy food it has a huge impact. In this age of insecurity everyone deserves to be able to make a living to support themselves and their families.

“It’s absolutely right these employers are being named and shamed but the Government needs to make sure this is not the only action it takes to prevent the exploitation of workers. There is still a lack of transparency in the process as errors that are self-corrected by businesses are not included in the list. It means most of the back payments remain a secret and the public might never find out the true scale of the problem.

“The Green Party believes the introduction of a minimum wage of £10 by 2020 is a necessary step towards tackling inequality and poverty and we have long campaigned for the minimum wage to be raised to the living wage level.”

Notes:

  1. http://www.bbc.co.uk/news/business-38979368
  2. https://www.carolinelucas.com/latest/minimum-wage-enforcement-ministers-making-a-mockery-of-%E2%80%98naming-shaming%E2%80%99-scheme
  3. For example, if two workers owed £500 each bring a complaint, HMRC will investigate and decide the employer owes total of £1,000. The employer will be named and shamed for that amount and pay a penalty of £2,000. However, if the employer reveals it actually has 200 workers in the same position and HMRC agrees, HMRC will allow the employer to self-correct in those 200 cases. But the employer does not get named and shamed for this £100,000 error and no penalty is imposed – because the employer self-corrected. 






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