Calls for harsher action on minimum wage defaulters

09-08-2007

Calls for harsher action on minimum wage defaulters
Fresh calls are being made for stricter action to be taken against employers who fail to pay the minimum wage, in order to better protect workers in low-paying jobs.

The Trades Union Congress (TUC) recommends that penalties be introduced for minimum wage defaulters, arguing that under existing legislation there is little incentive for businesses to commit to the minimum wage.

At present the minimum wage is fixed at £5.35 per hour for adults aged 22 and over.

According to figures highlighted by the TUC, 95 per cent of employers who pay less than the minimum only pay back what is owed if caught. In light of this concerns are mounting that the government needs to do more by way of punitive measures for offending parties.

"[The government] needs to come down far harder on unscrupulous employers who are constantly flouting the law and underpaying their workers," explained Frances O'Grady, TUC general secretary, to Growing Business

Ms O'Grady went on to recommend a £100 cash fine.

The Confederation of British Industry recently warned that small businesses are facing pressure from a higher minimum wage.

Related categories: HR / Recruitment.


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