Government names East Mids minimum wage failures
Two employers in the East Midlands owe their workers thousands of pounds after failing to pay them the National Minimum Wage, an investigation has found.
But a spokesman for one company that was 'named and shamed' told Insider the system should be reserved for repeat offenders.
An investigation by HM Revenue & Customs (HMRC) found that KIG (Nottm) Ltd, trading as Little Bears Day Nursery Nottingham, failed to pay two staff £9,298, while Civil Defence Supply Ltd in Lincoln owes an employee £3,454.
The businesses were named alongside 23 others from across the UK, including four in the West Midlands. According to the findings of the investigation, the Midlands owes the lion's share of arrears, which total £89,000.
Under new laws, offenders could face penalties of up to £20,000.
But a spokesman for Little Bears Day Nursery Nottingham told Insider: "From our point of view, we made an error.
"Once the error was picked up with local PAYE body, we then checked our records realised the mistake and notified our accountants. Going forward this will never happen again. It hurt us financially but these things are a lesson.
"We feel the name and shame should be for repeat offenders, not a first-time mistake."
Insider contacted Civil Defence Supply but has not received a reply.
Business minister Jo Swinson said: "Paying less than the minimum wage is wrong and illegal. Employers need to know that they will face tough consequences if they break the law.
"All workers are entitled to the minimum wage. This isn’t a generous gesture, this is the law. Government takes the enforcement of workers’ rights seriously and those who don’t pay will be named, shamed and fined."
Swinson revealed the employers under the government's revised naming scheme, which was introduced in October 2013 to shame companies which do not comply with National Minimum Wage laws.
Since it was introduced, the government has named 30 employers with arrears of £50,000. They were fined a total of £24,000.