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NHS Highland apologise after being ‘named and shamed’ by HMRC for failing to pay workers minimum wage

The health board is one of several across the country who broke National Minimum Wage law.

The signs outside NHS HIghland headquarters at Assynt House in Inverness. They are white with blue writing. It reads NHS HIghland, Assynt House, NHS Highland parking.
NHS Highland is assessing its capital projects after the government announcement

NHS Highland has apologised after failing to pay 23 workers the minimum wage.

According to a new HMRC report, the health board failed to pay £88,756.52 to 23 members of staff.

All affected employees have been compensated for the mistake, caused by rent for staff accommodation being deducted from pay – which brought them below the legal threshold.

An NHS Highland spokesperson said: “We accept that we made an error in relation to the national minimum wage scheme.

“This related to a very small number of staff who were in staff accommodation and had their rent deducted from their pay which brought them below the threshold.

“We are very sorry that this happened.

“All employees affected have been correctly compensated and we have put processes in place to ensure it does not happen again.

“We would like to reassure everyone that we are committed to meeting our responsibilities in paying the national minimum wage.

“This was an error which we have corrected.”

Two Aberdeenshire firms pay back owed wages

Two Aberdeenshire companies were also ‘named and shamed’ on the report, which was based on probes between 2015 and 2023 and included over 500 firms.

All the companies named in the government’s list have paid back what they owe to their staff, plus penalties of up to 200% of the amount they underpaid.

Kepak Group Limited, in Aberdeen, failed to pay £27,879.92 to 294 workers and has yet to comment.

Premier Coaches (Kintore) Limited, Kintore, AB51, failed to pay £1,542.61 to one worker.

Company director Alan Findlater explained he paid the penalty as soon as he was informed of the error.

He told The Press and Journal:“This happened four-and-a-half years ago and involved an apprentice during a trial period before he started his apprenticeship.

“HMRC notified me over two years ago they were going to make this information public.

“I have phoned and emailed on numerous occasions to ask why especially when it was paid as soon as I was made aware and still, to this date, have had no reply at all.

“I find the whole situation incredibly frustrating but also completely unfair.”

‘Underpayment undercuts compliant firms’

Independent Commissioner at the Low Pay Commission, Patricia Rice, said in a statement: “NMW underpayment not only cheats workers of their rightful due, it leaves compliant firms undercut by those who do not abide by the law.

“By naming the firms responsible for significant underpayment, we raise awareness of the nature and the scale of underpayment and encourage all employers to ensure that they fully comply with the law.”

What is the national minimum wage?

The national minimum wage is the legal minimum hourly rate of pay for workers in the UK and is set to increase on April 1 2024 as below.

  • National living wage – 23 and over, to become 21 and over on April 1 – £10.42 (2023), £11.44 (2024)
  • 18 to 20 national minimum wage – £7.49 (2023), £8.60 (2024)
  • Under 18 – £5.28 (2023), £6.40 (2024)
  • Apprentice – £5.28 (2023), £6.40 (2024)
  • Accommodation offset – £9.10 (2023), £9.99 (2024)

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