A CARMARTHEN car wash boss is one of five business owners named and shamed by Business Secretary Vince Cable for failing to pay a worker the national minimum wage.
Ruzi Ruzyyev, a car wash operator in Carmarthen, neglected to pay £225.38 to a worker.
We have been asked to clarify that Towy Hand Car Wash is not the car wash in question. Towy Hand Car Wash confirmed that they pay all their employees at least the minimum wage.
The Government is introducing a series of tougher measures to crack down on employers who flout National Minimum Wage law. The first of these, a tougher naming and shaming scheme, came into effect on 1 October 2013.
Business Secretary Vince Cable said: “Paying less than the minimum wage is illegal. If employers break the law they need to know that they will face tough consequences.
“We know that people are put off using a business’ service if it is found guilty of not paying its workers the minimum wage.
“This is a clear warning to employers: you will damage your reputation and face a stiff penalty, if you don’t pay the minimum wage.
“Any worker who is entitled to the minimum wage should receive it. It’s not only fair, it’s the law. If anyone suspects they are not being paid the wage they are legally entitled to they should call the Pay and Work Rights helpline.”
Five employers are the first to be named under the stricter rules, who between them owe workers a total of over £6,800 in arrears and have been charged financial penalties totalling £3381.40.
The other employers are: Peter Oakes of Peter Oakes Ltd, Macclesfield, neglected to pay £3619.70 to two workers; Lisa Maria Cathcart of Salon Sienna, Manchester, neglected to pay £1760.48 to a worker; Mohammed Yamin of Minto Guest House, Edinburgh, neglected to pay £808.56 to a worker and Anne Henderson of Chambers Hairdressers, Middlesbrough neglected to pay £452.22 to a worker.
As well as being publicly named and shamed, employers who fail to pay their workers the National Minimum Wage will face higher financial penalties of up to £20,000 as of March 7.
The Government also plans to legislate at the earliest opportunity so that employers will also be given penalties of up to £20,000 for each individual worker they have underpaid, rather than the maximum fine applying to each employer. In the most serious cases, employers can also face criminal prosecution.
The new higher penalties that will come into force on 7 March 2014 will increase the National Minimum Wage financial penalty percentage from 50 per cent to 100 per cent of total underpayments and the maximum penalty applied from £5,000 to £20,000.
Employers have a duty to be aware of the different legal rates for the National Minimum Wage, which were increased on October 1, 2013, and may vary depending on the circumstances of their workers.
Employers are also encouraged to make sure they take into account all details that can affect how much workers are entitled to be paid – including such things as age, accommodation, travel time and deductions for uniform hire.
HM Revenue & Customs said the five cases named today were thoroughly investigated after the workers made complaints to the free and confidential Pay and Work Rights helpline.
Employers who are unsure of national minimum wage rules can also get free advice and information from the Pay and Work Rights Helpline on 0800 917 2368 or by visiting www.gov.uk.