Hundreds of Cumbrian businesses could be named and shamed if they haven’t updated their wage structures.
The warning, from Cumbria Chamber of Commerce, comes after the Government announced it will be sending checklists to employers to ensure they are paying the national minimum wage correctly.
HMRC says it is following the recommendations made in the autumn by the Low Pay Commission and issuing new rates of the National Living Wage and National Minimum Wage that came into force on 1 April.
However earlier this month a list of 191 business who have broken the law was released, including one Cumbrian employer who had been investigated for breaches before 2018 – and now the chamber is concerned some employers could be underpaying staff without realising it.
Managing director Suzanne Caldwell said: “The changes we’ve seen this year mark the first steps by the Government as it looks to meet its target of a National Living Wage set at two-thirds of median earnings by 2024, and we’re expecting current consultations to lead to a further rise next April.
“While it’s reasonable that the Government reviews these rates, given the difficult economic climate businesses have been enduring you have to question the timing and whether the changes should have been delayed until next year.
“But crucially employers need to ensure they’re aware of these changes and have implemented them where relevant.”
The Government confirmed last week that following investigations, a total of £2.1 million has been found to be owed to over 34,000 workers from employers based across the UK, including football clubs, cricket clubs, large multi-national chains and small sole traders.
The breaches took place between 2011 and 2018 and a list of named employers have since been made to pay back what they owed, and were fined an additional £3.2 million.
Mrs Caldwell said the chamber was particularly concerned that there had been very little highlighting or direction from the Government, while at the same time employers were having to navigate both the pandemic and Brexit.
“It wouldn’t be a surprise if some have missed the wage changes,” she said. “But the last thing we want to see is a business having to stop trading due to being hit by a government fine after struggling through the challenges of COVID and Brexit.”
