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Hair and beauty sector
targeted in new national minimum wage campaign
EMPLOYERS in the hairdressing and
beauty sectors who pay their staff below the national minimum wage (NMW) are
being targeted in a new campaign.
As part of this campaign; the 1st of its kind; HM Revenue and Customs (HMRC)
and the Department for Business, Innovation and Skills (BIS), supported by the
National Hairdressers' Federation and the Hair and Beauty Industry Authority,
will work with hair and beauty businesses to help them understand their pay
obligations to their employees.
HMRC will provide employers with tailored tools and guidance to check if they
are paying the correct amount, and put it right where they are not. Employers
who take this opportunity to self correct will not have to pay penalties, nor
will they be 'named and shamed'. If employers choose not to comply with
their NMW obligations, HMRC will take action to ensure that employees are paid
what they are owed.
HMRC action to tackle employers who fail to pay the minimum wage identified £3.2
million in NMW arrears involving over 26,000 workers across a range of sectors
in 2014/15 alone. The Government is committed to ensuring every employee
receives at least the NMW, and HMRC is helping workers to recover any money owed
to them.
BIS analysis shows that 42% of businesses in the sector do not pay level 2 and
level 3 apprentices the correct minimum wage – the highest underpayment rate of
any sector. Those paying under the minimum wage now have a chance to put things
right. If they fail to do so it could result in their business being publicly 'named
and shamed' and facing a fine of up to £20,000 per employee.
Jennie Granger, HMRC Director General of Enforcement and Compliance, said:-
"This innovative campaign is about helping employees who have been underpaid
get the money they are legally due back into their pockets. It will help them
understand where they can report underpaying employers confidentially.
It is also about helping employers check if they are making mistakes, and
self-correct if they are. Some employers will need a bit of a reminder to check
they are getting it right, and some will need stronger action from us, so we are
bringing in more enforcement officers to support this campaign.
I urge all employers and employees in the sector to check that salary is being
paid correctly, as we will use these extra resources to find and investigate
where it is not. Check you're paying NMW correctly; it's worth it."
This new campaign is the first step in expanding HMRC's compliance activities
using smart data.
The government, in the Summer Budget, announced extra funding to expand HMRC's
data analytics and enforcement teams.
Employers who are unsure of NMW rules and want to find out more can get free
advice through the Acas helpline 0300 123 1100.
Hair and beauty businesses are being asked to come forward as part of the
National Minimum Wage Campaign by:-
► Telling HMRC they want to take part in the campaign
► Disclosing details of arrears now paid to their workers and confirming that
wages worth at least the NMW are now paid to all workers.
For more details, plus help and support on the campaign, employers can phone a
dedicated helpline on:- 0300 123 2671 or visit HMRC's
website.
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