A Darlington hair salon and a Middlesbrough pub have been named on a government list of 70 firms who have been paying their employees less than the minimum wage.

Business minister Jo Swinson believes this to only be the tip of the iceberg.

The owner of a hair salon in Darlington owed £703.33 to an underpaid employee, and a pub in Middlesbrough underpaid two of their staff by £323.10.

The businesses will face financial penalties and be required to pay individual employees their outstanding wages.

The naming and shaming policy is also designed to work as a preventative measure and a deterrent to other employers. “Paying less than the minimum wage is illegal, immoral and completely unacceptable,” said Ms Swinson. “Naming and shaming gives a clear warning to employers who ignore the rules, that they will face reputational consequences as well as financial penalties of up to £20,000 if they don’t pay the minimum wage.

“We’re working hard in areas where we know there are particular problems, like the care sector, to make sure staff are paid fairly for the hard work they do.

“We are legislating through the Small Business, Enterprise and Employment Bill so that this penalty can be applied to each underpaid worker rather than per employer.

“We are helping workers recover the hundreds of thousands of pounds in pay owed to them as well as raising awareness to make sure workers are paid fairly in the first place.”

The government announced it has increased the budget and resources used for finding and prosecuting those who ignore this area of the law and continue to give low pay. The minimum wage for adults is currently £6.50 per hour, but this is rising to £6.70 in October.

Macks Solicitors are experienced in dealing with all aspects of employment law. Our employment department is situated in Darlington, but meetings can also be arranged at our office in Middlesbrough. Our employment solicitors in Darlington can help you with unfair dismissal, redundancy, workplace discrimination and other employment issues that may be affecting you.  We are able to support you through employment tribunals, including providing legal representation. You can contact our solicitors in Darlington on 01325 389800 to arrange a consultation.