38 Business
THE HERALD FRIDAY FEBRUARY 10 2017
MONEY MATTERS
THE GOVERNMENT has
revealed 10 of the most bizarre excuses used by unscrupulous business owners who have been found to have underpaid workers the NMW (national minimum wage). These employers used excuses such
as ‘only wanting to pay staff when there are customers to serve and believing it was acceptable to underpay workers until they had ‘proved’ themselves. The Government has launched
THE PRICES of products and
services in Wales is expected to rise as a result of Britain’s decision to leave the EU, according to a survey published this week. The International Trade Survey, commissioned by the British Chamber of Commerce (BCC) showed that more than half (54%) of businesses which responded were looking at raising their prices over the next year, as a result of the decline in the value of the pound since last June. 68% of respondents expected the
decline in the pound would increase their cost base in the coming year, while 44% said that the weaker sterling would have a negative impact on domestic sales margins. There was a notable uncertainty
surrounding export margins, with a quarter of respondents suggesting that a weaker pound would have a positive effect, against 22% who claimed the impact would be negative. The survey asked around 1,500
businesses to participate in the survey last December. Director General of the BCC Dr
Adam Marshall said: "The depreciation of Sterling in recent months has been the main tangible impact that firms have had to grapple with since the EU referendum vote. "Our research shows that the
falling pound has been a double-edged sword for many UK businesses. Nearly as many exporters say the low pound is damaging them as benefiting them. For firms that import, it's now more expensive, and companies may find themselves locked into contracts with suppliers and unable to be responsive to currency fluctuations." "Our survey shows that inflation
is going to be an important concern for businesses over the coming year. While inflation rates aren't high by historical standards, they are still putting increasing pressure on companies. Rising costs are squeezing margins, and forcing many firms to
increase the prices of their goods and services." The survey also pointed out how
businesses were managing the risk of currency fluctuations. Around 45% businesses said they do not currently manage currency risk, while 46% said they would not expect to manage it over the next six months. Of those that currently do, 32% said they were mitigating the risk by invoicing in the sterling instead of customers' local foreign currency. This was found to be the most popular method. Steffan Lewis AM, Plaid Cymru
Shadow Cabinet Secretary for External Affairs, said: “When a majority of people in Wales voted to leave the EU last year, they did not vote to gut our economy, damage our businesses, and lose jobs. Brexit has not even happened yet, but this survey by the British Chambers of Commerce shows that a substantial number of UK businesses are already feeling the effect of a fall in the value of the pound. “The triggering of Article 50
will be followed by years of market uncertainty. With over half of the businesses surveyed saying that they expect to have to increase the prices of their products and services over the next 12 months, the cost of Brexit is going to start being felt in people’s pockets.
“Plaid Cymru will not support a
hard Brexit that risks imposing trade tariffs and costly new regulatory barriers on businesses trading with the rest of Europe. Cutting Britain off from our closest neighbours, and exchanging existing trading relationships with the promise of mythical trade deals with countries on the other side of the world, is economic recklessness. “Plaid Cymru has been clear that
continuing participation in the single market is the best way to safeguard Wales’ future. We must prioritise protecting Wales’ economy and not allow Westminster to choose a Brexit settlement that puts ideology over keeping Wales in business.”
an awareness campaign to encourage workers to check their pay to ensure they are receiving at least the statutory minimum ahead of the NMW and NLW (national living wage) increases on 1 April 2017.
Employers need to ensure they are
paying their employees at least the NMW and NLW. This will be the second increase in six months for the NMW rates. Going forward the NMW and NLW
rates will both be reviewed annually in April. In a recent article in the Employer Bulletin, HMRC cite common errors: • Not paying the right rate, perhaps missing an employee's birthday
• Making deductions from wages which reduce the employee’s pay below the NMW/NLW rate
• •
•
Including top ups to pay that do not qualify for NMW/NLW
Failure to classify workers correctly, so treating them as interns volunteers or self employed
Failure to include all the time a worker is working, for example time spent shutting up shop or waiting to clear security. The penalties imposed on employers
that are in breach of the minimum wage legislation are 200% of arrears owed to workers. The maximum penalty is £20,000
per worker. The penalty is reduced by 50% if the
unpaid wages and the penalty are paid within 14 days. HMRC also name and shame employers who are penalised. The Government’s latest £1.7
million campaign aims to make sure workers are being paid at least the National Minimum Wage, or National Living Wage, depending on their age, and is part of a commitment to making sure the economy works for all. The Top 10 excuses for underpaying
staff were – 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 three 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 By law, all workers must be paid at
least £7.20 an hour if they are aged 25 years and over, or the National Minimum Wage rate relevant to their age if they are younger.
Business Minister Margot James
said: “There are no excuses for underpaying staff what they are legally entitled to. This campaign will raise awareness among the lowest paid in society about what they must legally receive and I would encourage anyone who thinks they may be paid less to contact Acas as soon as possible. “Every call is followed up by HMRC
and we are determined to make sure everybody in work receives a fair wage.” Workers are encouraged to regularly
check their pay to ensure they are receiving at least the minimum or living wage, depending on their age. For more information and to report underpayment, visit
www.gov.uk/ national-minimum-wage or contact Acas for free and impartial advice – http://
www.acas.org.uk/ From April 1, 2017, the National
Living Wage rate for those aged 25 years and over will increase by 30p to £7.50 per hour.
For the National Minimum Wage:
• The rate for 21 to 24 year olds will increase by 10p to £7.05 per hour
• The rate for 18 to 20 year olds will increase by 5 to £5.60 per hour
• The rate for 16 to 17 year olds will increase by 5p to £4.05 per hour
• The apprentice rate will increase by 10p to £3.50 per hour The new rates were been
recommended by the independent Low Pay Commission after careful consideration of evidence from both workers and employers. HMRC’s enforcement budget was
increased from £13 million to £20 million in April 2016, increasing the number of compliance officers available to investigate NMW complaints. An additional £4.3 million in
enforcement funding was announced in the last Autumn Statement.
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