5 June 2014
“This move was not unexpected, as the government has been talking about it since February. The intention is to enforce a maximum penalty of £20,000 per underpaid worker (as opposed to £20,000 in total), as well as 100% of the underpaid wages and ‘naming and shaming’. But the fact ministers have moved so quickly shows the priority the government is giving to this issue.
“All salons, of course, need to comply with the law and pay people their due – the NHBF has always been clear about that. By not paying the minimum wage salons now risk their own future – fines of this level would put most small businesses out of business – and they also damage the reputation of our whole industry.
“But the minimum wage can be complex to administer, especially for small businesses and for those employing young people and Apprentices. That’s why NHBF provides expert help on payroll, tax and employment law issues.
“The message for salon owners is clear: you need to review and check your payment processes and make compliance a priority. As the employer, even if you outsource your payroll, it is still your responsibility to pay the minimum wage at the correct rate.