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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.
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. 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".