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Fines for companies flouting wage laws

Date 10 Jan 2007
Author The Editor

Companies that do not pay staff the minimum wage could now face a £200 fine for each underpaid worker, the Department of Trade and Industry (DTI) announced this week. Trade and Industry Secretary Alistair Darling announced that employers that refuse to pay back arrears to workers owed minimum wage payments will now be penalised.

Mr 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.”

Dawn Primarolo, Paymaster General, 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.”

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