Wage ‘shaming’ shows salons still need to make payroll a priority, says NHBF

The latest “naming and shaming” by government of businesses that have failed to pay employees their correct national minimum wage highlights how important it is salons make absolutely sure their payroll systems are accurate, the NHBF has warned.

The Department for Business, Innovation and Skills has “named and shamed” 25 employers, including several hair and beauty salons, for breaking the law and failing to pay the correct national minimum wage.

Employers who fail to pay employees the right wage risk being publicly named and can face penalties of up to £20,000.

The government is also changing the law so that by next summer the maximum fine will be £20,000 per underpaid worker, rather than £20,000 in total.

NHBF chief executive Hilary Hall said: “The government is taking a tough line on businesses that don’t pay the right NMW rate. If you get this wrong, even by making a genuine mistake, it’s going to be even tougher in 2015.

The NHBF offers free advice to members through its website, www.nhf.info/nhf-guides But it’s vital for all salons to speak regularly to their payroll provider or a payroll expert to make sure they comply with the law and pay the correct minimum wage.