£200 fine for failing to meet minimum wage

DTI gets tough on employers who fail to pay the minimum wage

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 has announced.

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.

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 £3.2m in unpaid wages.

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