Govt protects businesses breaking minimum wage law

22 September 2016

The government is protecting companies that fail to pay minimum wage if they demonstrate they could face “a risk of personal harm” for breaking the law.

Government policy is to name and shame companies that fail to comply with wage laws, but the a Freedom of Information request filed by The Independent has revealed that 28 firms have escaped this punishment, with most claiming that publically revealing the truth would threaten their safety. Six businesses escaped the hit to their reputation because “other factors suggested it would not be in the public interest to name the company”, but no details were given as to why this might be.

A spokeswoman for the Department of Business, Energy and Industrial Strategy refused to share with the Independent what evidence businesses need to provide in order to be exempt from naming and shaming policy.

Tim Roache, General secretary of the GMB union, told the newspaper: “Companies have been allowed to lurk in the shadows by using these get-out clauses, despite flagrantly ignoring legislation to pay their workers the absolute legal minimum.”