Not Paying Minimum Wage

Investigators from HMRC have revealed some of the worst excuses given to them by employers caught out for underpaying staff, which include:

1. The employee wasn’t a good worker so I didn’t think they deserved to be paid the National Minimum Wage.
2. It’s part of UK culture not to pay young workers for the first 3 months as they have to prove their ‘worth’ first.
3. I thought it was ok to pay foreign workers below the National Minimum Wage as they aren’t British and therefore don’t have the right to be paid it.
4. She doesn’t deserve the National Minimum Wage because she only makes the teas and sweeps the floors.
5. I’ve got an agreement with my workers that I won’t pay them the National Minimum Wage; they understand and they even signed a contract to this effect.
6. My accountant and I speak a different language – he doesn’t understand me and that’s why he doesn’t pay my workers the correct wages.
7. My workers like to think of themselves as being self-employed and the National Minimum Wage doesn’t apply to people who work for themselves.
8. My workers are often just on standby when there are no customers in the shop; I only pay them for when they’re actually serving someone.
9. My employee is still learning so they aren’t entitled to the National Minimum Wage.
10. The National Minimum Wage doesn’t apply to my business.

No Silver Bullet Answer to Combat Low Pay

No Silver Bullet Answer to Combat Low Pay

This afternoon, 16/6/15, Cabinet will be asked to endorse the West Yorkshire Combined Authority Low Pay Charter.

Obviously this is a strategy to combat Low Pay where ever possible but also to alleviate it where not.
The Charter has been drawn up by the Lower Paid Workers Group established last year. The Silver Bullet reference refers to the fact that, whilst it is an admirable aim and something we were proud to achieve in Kirklees, the Living Wage is not a Silver Bullet, it does not eliminate low pay or the problems faced by low pay.

The paper makes 10 recommendations as to the next steps and I am sure the Cabinet will agree to task our officers to investigate all these recommendations with an aim towards implementation.

Why Kirklees Labour want to pay a Living Wage to employees

At the Budget Council meeting in February 2015, the Leader of the Council and Labour Group, Cllr David Sheard, proudly announced Labour's support to pay employees a Living Wage.

There are significant benefits to paying a Living Wage and it is important awareness of these is raised.

On average:

• Staff absences drop by 25%
• Better customer service, fewer complaints and enhanced loyalty
• 80% of the workforce believe it has improved their performance
• Staff turnover dropping to 1% from 4%
• 80% of employers feel their staff delivered better quality of work
• An improved awareness of customers viewing the organisation as an ethical one

There is also a link between Health Inequalities and a Living Wage:

Evidence shows that insufficient income is associated with worse outcomes across virtually all domains of health, including long term health and life expectancy. The negative health effects of living on a low income can be caused by material factors - the ability to afford the items necessary for a healthy life - and/or psychosocial factors, such as anxiety and depression.

Paying employees a Living Wage is quite simply the right thing to do.

Kirklees Lib-Dem Myth Buster #2: Supporting the Living Wage...or not?

It was interesting to see that on 17 February, the day before Budget Council, the Kirklees Lib-Dems were claiming they were going to support the implementation of a Living Wage for all Council employees.

They were good enough to declare their intention to the world, or at least the people of Kirklees, via Twitter:

 

 

 

Admirable as the sentiment was, sentiment is what it remained, as on the 18 February the Lib-Dem Group chose not to vote in favour of the Kirklees Labour budget proposals. Since it was Labour who had proposed committing in their budget to pay Kirklees Council employees the Living Wage, the Lib-Dems did not follow through on their very public announcement.

 

Perhaps people should remind the Lib-Dems that sentiment does not put food on the table, but a Living Wage would.