In October 2010 the government announced a new scheme to name employers who break minimum wage law. The naming scheme came into effect on 1 January 2011.
The naming scheme was revised in October 2013, and then paused in July 2018, to take account of Ministerial concerns and recommendations made by the previous Director of Labour Market Enforcement.
Naming recommenced in 2020, on a revised basis. With updated guidance issued, the government will;
• increase the arrears threshold over which employers will be considered from
naming from over £100 to over £500 (with exceptions as set out at 5.3.4)
• provide more information about reasons for breaches
• publish an educational bulletin for employers, highlighting common reasons for
• name employers more frequently than previously
A Direction, issued on 11 February 2020, stated “A notice of underpayment relating to a worker for a pay reference period (or relating to more than one worker and / or to more than one pay reference period) is not to impose a requirement to pay a financial penalty where all of the following five conditions are met in respect of each such worker and each such pay reference period:
First condition: nature of the underpayment
Second condition: exclusions
Third condition: consent of the worker
Fourth condition: receipt of goods or services or benefits by the worker
Fifth condition: prior conduct of the employer