Employers who fail to pay the national minimum wage (NMW) are to be publicly named and shamed under revamped rules designed to tackle any breaches of the regulations by any employer.

The new rules will come into effect in October 2013 and are part of government efforts to toughen up enforcement of the NMW and increase compliance.

Previously, employers had to meet one of seven published criteria before they could be named. The minimum amount of NMW owed to workers had to be at least £2000 and the average per worker at least £500 before HMRC could refer an employer to the Department for Business, Innovation & Skills (BIS) for naming.

Under the revised scheme, these restrictions are abolished so that any employer who breaks minimum wage law can be named. The government says that it hopes the bad publicity this will produce, along with the existing financial penalties for failure to pay NMW, will act as an additional deterrent.

Employment relations minister Jo Swinson said: 'If employers break this law they need to know that we will take tough action. This is why I'm making changes so it is easier to name and shame employers who break the law. This gives a clear warning to rogue employers who ignore the rules, that they will face reputational consequences as well as a fine.'

Over the past year, HMRC identified 736 employers who had failed to pay the NMW resulting in the recovery of £3.9m in unpaid wages for over 26,500 workers.

Employers who pay workers less than the NMW have to pay back arrears of wages at current minimum wage rates and face financial penalties of up to £5,000, calculated on the basis of 50% of the total underpayment.

The revised scheme will name employers that have been issued with a Notice of Underpayment (NoU) by HMRC, setting out the owed wages to be paid by the employer together with the penalty for not complying with minimum wage law. Employers will continue to have 28 days to appeal against the NoU.