“Businesses are not implementing minimum wage laws”

Aug 8, 2017

In April 2017, a new National Minimum Wage was introduced, so that anyone above the age of 25 was entitled to £7.50 per hour. This is part of a new scheme that will a consistent increase to over £9 by 2020.

national minimum wage changes april 2017 new

However Sir David Metcalf, Director of Labour Market Enforcement, has suggested that too many businesses are not administering the minimum requirements, and wants tougher action against employers who breach the law.

“Do we have the right level of enforcement resources, and/or are the fines high enough? This is something I am going to properly look at.”

Sir David Metcalf

In a recent interview Metcalf said that efforts so against businesses has been “rather patchy” and he will be looking at proposals including stricter bans on people from being company directors if they breach the law.
Metcalf wants to launch a consultation to outline any bad practices by employers and how it can be tackled. “This is vital as more workers find themselves on minimum wage.”

It is likely that increased fines will be put into place to ensure that businesses are doing enough to safeguard all employees are receiving minimum wage.

With the continuous rise of bespoke workforce management solutions becoming an essential tool to businesses employing ‘pay-per-hour’ staff, it is expected that even more companies will be looking at implementing the software.

Metcalf, who used to advise the government on immigration, was reluctant to speculate on the impact of Brexit on low-paid workers, but suggested there would not be a big increase in wages as a result of leaving the EU.

ShopWorks staff scheduling software incorporates a number of key modules required to efficiently manage your staff. The compliance module allows managers to ensure that none of their staff are working illegally, whether due to the correct training or a valid visa. This also includes implementing every pay rule required for any business, so that no staff member is ever over or under paid for their working hours.

This compliments the budgeting module, which is regarded as the most sophisticated of its kind. By working to pre-determined budgets, each manager can ensure that they will never spend more than allocated before approving a weekly or monthly schedule. The simple drag and drop platform allows for a clear central view and allows for easy changes if required.

It is expected that high-street companies will be under the microscope in particular: “I have been told the garment trade is riddled with noncompliance among the subcontractors,” he said. “In America, if the equivalent of HMRC goes in and finds a subcontractor that is non-compliant, it embargoes the goods.” Leading high-street brands “will say ‘well gosh, where are our clothes, we need them next week’ – and they then put pressure on the contractor to make sure they comply with the minimum wage. So I am quite attracted to that.”

To find out more about Shopworks staff scheduling and what each module offers to improve savings on staff costs, click here.


Want to more about this topic or would like to speak to us regarding anything Workforce Management related? Just get in touch with us below and we'd be happy to help.