The scheme, which came into effect on January 1, now ensures that employers who breach the minimum wage rules can be publicized through press notices by the Department for Business, Innovation and Skills (BIS).
The policy document explains: “The objective of the naming scheme is to raise awareness of NMW enforcement and deter employers who would otherwise be tempted to defy NMW law”
“The Government recognises that some employers are more likely to respond to the social and economic sanctions that may flow from details of their payment practices being made public, than from financial deterrents. The naming scheme will ensure that the public and businesses, including workers, prospective workers, and law-abiding employers, have access to information which will enable them to make informed choices about who they work for (in the case of workers) and who they do business with (in the case of employers).
“The Government envisages that raising awareness of NMW enforcement in this way could also encourage more workers who have been underpaid to come forward”.