'Name and shame' firms over wages

Hospitality was included in the worst offending industries for flouting laws

Employers who break the national minimum wage law should be named and shamed, a committee of MPs has said.

The UK government currently only names companies which "wilfully" disregard the legislation.

The call was made after the Scottish Affairs Committee probed the enforcement of the rules.

Since 2002, HM Revenue and Customs has recorded 957 non-compliant employers with headquarters in Scotland. Most were in hospitality and hairdressing.

The National Minimum Wage Act was introduced in 1998 and sets the bar at £5.80 for workers aged 22 or over.

Employees aged between 18 and 21 must be paid £4.83 and those under 18 must be paid the "youth rate" of £3.57 per hour.

'Quick buck'

However, last year £711,667 of arrears were identified by Scottish teams investigating complaints.

The committee warned in its report that enforcement campaigns are not working.

Committee chairman Mohammad Sarwar MP said: "Customers must have complete confidence that the services they pay for are compliant with national minimum wage law.

"Equally, it is vital that employees understand their entitlement and are not exploited, either unintentionally due to confusion about the law or by bosses looking to make a quick buck.

"Naming employers who fail to comply is one crucial step in tackling this problem."

But he said this must be done alongside awareness campaigns which get the messages about rates and penalties across to all sectors.