Jumat, 23 Agustus 2013

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Minimum wage underpayers to be named

worker in factoryWorkers should be paid £6.19 an hour

Employers who fail to pay the national minimum wage will be named and shamed under plans announced by the government.

It hopes the new rules, which come into effect in October, will embarrass firms into paying up.

Tens of thousands of people have complained about not being paid the minimum wage.

But to date only one employer, a hairdresser from Leicester, has been named publically for failing to pay it.

Under the existing rules, employers can only be named if they meet one of seven criteria.

In addition, the minimum amount owed to workers has to be at least £2,000, and the average per worker has to be at least £500.

But these restrictions will now be removed, allowing employers to be named much more easily.

"Paying less than the minimum wage is illegal," said Jo Swinson, the Employment Relations Minister.

"This gives a clear warning to rogue employers who ignore the rules, that they will face reputational consequences as well as a fine if they don't pay the minimum wage."

Enforcement

At the moment employers found to be breaking the law have to pay back the amount they owe, and in addition face financial penalties of up to £5,000.

Even so last year HM Revenue and Customs (HMRC) identified 736 employers who failed to pay the national minimum wage.

Following their actions, more than 26,500 workers received the wages they were owed, amounting to £3.9m.

But the TUC suspects the problem is much larger, given the thousands of people who complain every year to the minimum wage telephone helpline.

The trade union organisation has welcomed the government's move, but wants to see more prosecutions and higher fines.

"Employers need to know that there will be no hiding place if they break the law," said TUC general secretary Frances O'Grady.

"The government must put more money into enforcement so that there are fewer places for even the most determined minimum wage cheats to hide," she said.

Labour also said the government needed to take stronger action on enforcement.

The current minimum wage for adults is £6.19, rising to £6.31 in October.

Anyone who is not receiving it can phone the National Minimum Wage helpline on 0845 6000 678.



Source: BBC News - Business http://www.bbc.co.uk/news/business-23809545#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa