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Minimum wage crackdown announced | Minimum wage crackdown announced |
(40 minutes later) | |
Employers who do not pay staff the national minimum wage face a £200 fine for each worker affected, the government has announced. | Employers who do not pay staff the national minimum wage face a £200 fine for each worker affected, the government has announced. |
Those who fail to pay the statutory rate also risk a criminal prosecution in the new crackdown. | 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. |
Investigation | |
When workers make a complaint that they are not getting the minimum wage, Her Majesty's Revenue and Customs (HMRC) investigate the employer. | |
Under the new rules, if the employer is found to be at fault they are given seven days to pay back arrears they owe the worker. | |
Those employers who do not pay within seven days risk the £200-per-worker fine. | |
Employers who fail to pay the minimum wage could also face a criminal prosecution, risking a further £5,000 fine. | |
We are determined that every worker should earn a fair wage for a day's work Dawn PrimaroloPaymaster general | |
Announcing the crackdown, Trade and Industry Secretary Alistair Darling said: "Workers have the right to a decent minimum wage and we are determined they get it. | |
"To those employers avoiding the minimum wage the message is: Don't pay it and you'll pay the fine. | |
"In the last year alone the government's enforcement teams across the UK helped over 25,000 workers get more than £3m back in unpaid wages. | |
"The vast majority of good employers need to know they are operating on a level playing field. These measures will help deliver that." | |
'Fair wage' | |
Paymaster General Dawn Primarolo said: "We are determined that every worker should earn a fair wage for a day's work. | |
"HMRC enforcement teams work across the UK to educate employers and employees about their rights and responsibilities with the minimum wage and where necessary take enforcement action." | |
The Federation of Small Businesses (FSB) welcomed the announcement but said increases to the minimum wage were hitting some firms. | |
Alan Tyrrell, FSB employment chairman, said: "While we welcome any moves to eradicate unlawful and unfair competition, this must be done without unnecessarily disadvantaging the vast majority of law-abiding small businesses." | |
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". |