Reasons for not paying minimum wage

The British Government has named and shamed 360 employers who are underpaying their employees. Top of the list was Debenhams were nearly 12,000 employees were short-changed.

Some of the excuses for underpaying employees included:

• Pay is topped up with tips
• Wages were docked to pay for their Christmas Party
• Wages were docked to pay for their uniform

However, some more imaginative excuses included:

• “It’s part of UK culture not to pay young workers for the first three months as they have to prove their worth first.”
• "I thought it was OK to pay foreign workers below the national minimum wage.”
• "She doesn’t deserve the national minimum wage because she only makes the tea and sweeps the floors.”
• "I’ve got an agreement with my workers that I won’t pay them the national minimum wage; they understand, and even signed a contract to this effect.
• “My workers are often just on standby when there are no customers in the shop; I only pay them for when they’re actually serving someone.”

Although UK excuses, none of the above would stand up in Ireland either. The Low Pay Commission was established in 2015 to review minimum wage levels. Since then there have been two increases to minimum wage which currently stands at €9.25. Employers need to ensure that they are fully compliant with this.