HMRC launches campaign targeting hair and beauty employers not paying the National Minimum Wage
Last week HM Revenue and Customs launched its campaign to target salon and barbershop owners who may be paying less than the National Minimum Wage.
The NHF has warned salon owners about the upcoming campaign since the beginning of the year, but is now urging members to double check their payrolls comply with government regulations while they still have the opportunity to fix any underpayments.
With the hairdressing, beauty and barbering industry bearing a reputation for failing to pay the correct wage, HMRC is pushing ahead with the new campaign to help underpaid employees get the pay they are entitled to. The first stage of their campaign is to offer help, advice and penalty-free opportunities for employers who have not been paying the correct wage – provided they report it and put it right.
The NHF’s experience in handling thousands of calls on the National Minimum Wage shows that the most common errors are made with apprentices as rates vary depending on age and at different stages of training. Many employers are also not aware of what they are allowed to deduct from wages, for example for uniforms or for accommodation, and many remain unaware that using tips to top up pay to the national minimum has been illegal since 2009.
NHF chief executive Hilary Hall said: “The NHF has been working with HMRC to ensure salon owners get a fair deal and have the opportunity to put right any underpayments. We have created a new guide just on the National Minimum Wage, so now’s the time to get our industry’s pay in order. Once the campaign has ended, HMRC will be throwing the book at salon owners who continue to break the law by paying less than the minimum wage. Ignorance will not be an excuse.”
Paul Curry, NHF President said: “We cannot keep carrying around this reputation of being a poorly paid industry if we want to encourage young talent to enter our industry. Successful salons know that without a good team, their business will fail. The national minimum wage is just that – a minimum – so salons which can afford to do so should be rewarding their staff with properly structured pay scales and clear incentives for achieving targets which will not only increase earnings but also help the business grow.
The NHF’s new National Minimum Wage guide for members includes details of the rates now and new rates in October. It features scenarios to address common errors, especially on apprenticeships, such as the age of the apprentice, the stage they’ve reached on their apprenticeship programme, the type of contract or deeds available, what’s in an apprenticeship framework, what happens if apprentices complete their programme earlier or later than expected or progress onto another apprenticeship.
Gov.uk/government/collections/national-minimum-wage-campaign
