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Plan for minimum wage crackdown Minimum wage crackdown announced
(about 8 hours later)
A crackdown to ensure employers are paying staff at least the national minimum wage is expected to be announced by the government. Employers who do not pay staff the national minimum wage face a £200 fine for each worker affected, the government has announced.
Bosses are expected to face tougher financial penalties if they are caught breaking the law. Those who fail to pay the statutory rate also risk a criminal prosecution in the new crackdown.
The adult minimum wage increased to £5.35 per hour last October, which has benefited more than a million people.The adult minimum wage increased to £5.35 per hour last October, which has benefited more than a million people.
But last year more than 1,500 employers were exposed for not paying the minimum wage to more than 25,000 workers.But last year more than 1,500 employers were exposed for not paying the minimum wage to more than 25,000 workers.
Now the Department of Trade and Industry is anxious to take a tougher line. The Trade and Industry Secretary Alistair Darling hopes the penalty will be seen as an extra incentive to encourage employers to stay within the law.
A Commons announcement is expected to warn bosses who refuse to comply with Revenue and Customs enforcement teams they will face a financial penalty after seven days - regardless of the reason for the infringement.
'Named and shamed'
The amount will vary depending on the size of the workforce. In one case in 2006, 2,000 workers were being underpaid.
The Trade Secretary Alistair Darling hopes the penalty will be seen as an extra incentive to encourage employers to stay within the law.
In October, TUC leader Brendan Barber said employers who broke the law should be "named and shamed".In October, TUC leader Brendan Barber said employers who broke the law should be "named and shamed".
He added they should also "face tougher penalties, including being forced to give back pay with interest to their staff who've been cheated of their wages".He added they should also "face tougher penalties, including being forced to give back pay with interest to their staff who've been cheated of their wages".