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You can find the current article at its original source at https://www.theguardian.com/money/2017/jul/25/uk-labour-market-tsar-rogue-bosses-sir-david-metcalf
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UK labour market tsar vows to jail rogue bosses | UK labour market tsar vows to jail rogue bosses |
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The Low Pay Commission founding member tasked with enforcing workers’ rights has pledged to jail rogue bosses and investigate failing industries as part of the government’s latest response to workplace scandals uncovered at companies including Sports Direct. | The Low Pay Commission founding member tasked with enforcing workers’ rights has pledged to jail rogue bosses and investigate failing industries as part of the government’s latest response to workplace scandals uncovered at companies including Sports Direct. |
Sir David Metcalf, director of labour market enforcement, who reports to both the home and business secretaries, added that he will also consult on increasing both the resources available to investigators and the fines levied on guilty firms, as he questioned whether official statistics were an “understatement of the real level of non-compliance”. | Sir David Metcalf, director of labour market enforcement, who reports to both the home and business secretaries, added that he will also consult on increasing both the resources available to investigators and the fines levied on guilty firms, as he questioned whether official statistics were an “understatement of the real level of non-compliance”. |
The comments were part of Metcalf’s first major public intervention since being appointed to oversee a crackdown on exploitation in the workplace in January, giving him oversight on the policing of a range of offences from modern-day slavery to non-payment of the minimum wage. | The comments were part of Metcalf’s first major public intervention since being appointed to oversee a crackdown on exploitation in the workplace in January, giving him oversight on the policing of a range of offences from modern-day slavery to non-payment of the minimum wage. |
In a report on the scope of his new job Metcalf trumpeted more effective deterrents as he set out his “strategic priorities” for the three government enforcement agencies within his remit: HMRC’s national minimum wage (NMW) enforcement team, the Gangmasters and Labour Abuse Authority (GLAA) and the Employment Agency Standards Inspectorate (EAS). | In a report on the scope of his new job Metcalf trumpeted more effective deterrents as he set out his “strategic priorities” for the three government enforcement agencies within his remit: HMRC’s national minimum wage (NMW) enforcement team, the Gangmasters and Labour Abuse Authority (GLAA) and the Employment Agency Standards Inspectorate (EAS). |
Metcalf said: “Over the coming months I will be working with government enforcement agencies and industry bodies to better identify and punish the most serious and repeat offenders taking advantage of vulnerable workers and honest businesses.” | Metcalf said: “Over the coming months I will be working with government enforcement agencies and industry bodies to better identify and punish the most serious and repeat offenders taking advantage of vulnerable workers and honest businesses.” |
Giving the example of investigations into firms paying less than the minimum wage – where fines average £400 a breach and HMRC conducts around 2,000 investigations a year in a country where 1.3m firms have employees – Metcalf said: “If you put together the low probability of a firm having an investigation and the fairly low fines then – how shall I put this? – I raised my eyebrows. So I will want to look at this.” | Giving the example of investigations into firms paying less than the minimum wage – where fines average £400 a breach and HMRC conducts around 2,000 investigations a year in a country where 1.3m firms have employees – Metcalf said: “If you put together the low probability of a firm having an investigation and the fairly low fines then – how shall I put this? – I raised my eyebrows. So I will want to look at this.” |
He also suggested that the full powers of the law had not been used to protect workers, despite numerous official statements that the government has taken abuses by employers seriously. | He also suggested that the full powers of the law had not been used to protect workers, despite numerous official statements that the government has taken abuses by employers seriously. |
“I do think we have proper laws – and we’ve just got this extra law for two-year jail sentences – and the issue is to properly enforce them,” he said. | “I do think we have proper laws – and we’ve just got this extra law for two-year jail sentences – and the issue is to properly enforce them,” he said. |
Other areas under consideration include examining how supply chains as a whole can be made to adhere more rigorously to employment laws, perhaps by mirroring rules in the US where top brands can be made jointly liable for infringements further down the supply chain, including by recruitment agencies, even if they did not directly employ the workers. | Other areas under consideration include examining how supply chains as a whole can be made to adhere more rigorously to employment laws, perhaps by mirroring rules in the US where top brands can be made jointly liable for infringements further down the supply chain, including by recruitment agencies, even if they did not directly employ the workers. |
Metcalf’s first major public pronouncements in the role came almost two years after a Guardian investigation exposed how workers at Sports Direct’s Shirebrook, Derbyshire warehouse had been paid less than the minimum wage. | Metcalf’s first major public pronouncements in the role came almost two years after a Guardian investigation exposed how workers at Sports Direct’s Shirebrook, Derbyshire warehouse had been paid less than the minimum wage. |
Neither the retailer nor its employment agencies has been named and shamed by the business department, despite Sports Direct’s founder, Mike Ashley, admitting the breach during a parliamentary inquiry last year. | Neither the retailer nor its employment agencies has been named and shamed by the business department, despite Sports Direct’s founder, Mike Ashley, admitting the breach during a parliamentary inquiry last year. |
In the wake of the reports, the then business minister, Nick Boles, pledged that if the media uncovered bad practice, “then I can promise you the government will be sure to review their findings and enforce the law where necessary”. | In the wake of the reports, the then business minister, Nick Boles, pledged that if the media uncovered bad practice, “then I can promise you the government will be sure to review their findings and enforce the law where necessary”. |
Responding to Metcalf’s report, the business minister, Margot James, said: “We are determined to stamp out any workplace exploitation, from minimum wage abuses to modern slavery. | Responding to Metcalf’s report, the business minister, Margot James, said: “We are determined to stamp out any workplace exploitation, from minimum wage abuses to modern slavery. |
“While the majority of employers create a fair and safe environment for their workers, there are a small minority of rogue employers who break the law and we will use all enforcement measures at our disposal to crack down on labour market abuses.” | “While the majority of employers create a fair and safe environment for their workers, there are a small minority of rogue employers who break the law and we will use all enforcement measures at our disposal to crack down on labour market abuses.” |
Metcalf’s report was published alongside this year’s national minimum and living wage enforcement statistics. The figures show in 2016/17 HMRC’s enforcement teams identified a record £10.9m in back pay for 98,150 of the UK’s lowest-paid workers – a 69% increase on last year. | Metcalf’s report was published alongside this year’s national minimum and living wage enforcement statistics. The figures show in 2016/17 HMRC’s enforcement teams identified a record £10.9m in back pay for 98,150 of the UK’s lowest-paid workers – a 69% increase on last year. |
It came a fortnight after Matthew Taylor’s government-commissioned report into the world of work, which set out new protections for workers in the “gig economy”. | It came a fortnight after Matthew Taylor’s government-commissioned report into the world of work, which set out new protections for workers in the “gig economy”. |
Work & careers | Work & careers |
Gig economy | Gig economy |
news | news |
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