HMRC fine salons for not paying minimum wage

139 companies around the UK, including some hair & beauty salons, are being named and shamed today for failing to pay their workers the minimum wage.

Those that were found not to have complied with the minimum wage (£4.15 an hour for apprentices and up to £8.72 for the over-25s) have been ordered to back-pay what they owe to their staff (at current pay rates), as well as all taxes due on these underpayments.

They are also being fined (up to 200% of arrears – capped at £10,000 per worker) as well as name and shamed!

This is the first time the government has named and shamed companies for failing to pay National Minimum Wage since 2018 and shows how seriously HMRC are taking the issue.

While not all breaches of minimum wage rules are intentional, it is the responsibility of all employers to ensure they are following the law.

Salons often get caught out where they pay their staff on a commission-only basis. On a quiet month the stylist’s pay can work out at less than minimum pay when you look at how many hours they’re in the salon for.

The other main causes of minimum wage breaches is around your salon’s lower-paid employees being made to cover work costs, such as paying for their own uniform, their own training or tips they receive being counted as ‘pay’ when it shouldn’t.