Employers who refuse to pay the minimum wage could face a £200 fine for every worker they had underpaid, Trade and Industry Secretary Alistair Darling announced today. Employers already have to pay back arrears they owe to the worker and now those who refuse to pay up will be penalised.

 

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.” In cases where workers complain they are not getting the minimum wage, Her Majesty’s Revenue and Customs (HMRC) investigate the employer.  

 

If the complaint is upheld and the employer will not pay then he is given a warning to repay the arrears within seven days. Those employers who do not pay within seven days risk a fine. 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 vast majority of employers are honest and scrupulous but this new measure will put further pressure on those rogue employers who continue to flout the law.” Employers who fail to pay the minimum wage can also face prosecution, risking a criminal record and a £5,000 fine. Cases are currently being investigated, and pending criminal prosecution. More than 1.2 million people benefited from the increases in the national minimum wage on October 1st last year, and the 16 HMRC compliance teams across the country help thousands of workers each year. Between 2005 and 2006, more than 61,000 calls were made to the national minimum wage helpline, and the Government helped 25,314 workers recover more than £3.2 million in unpaid wages.