National Minimum Wage Naming Scheme
Debate between Jo Stevens and Kelly Tolhurst(5 years, 5 months ago)
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Kelly Tolhurst
The hon. Lady raises an issue regarding the incorrect practice of employers. As I have said, HMRC will investigate every complaint and ACAS is available to receive those complaints. We have asked the Low Pay Commission to undertake a review of the structure of the national minimum wage, and it will report back later in the year. We encourage employers always to pay above the minimum wage brackets if they are able to do so.
Jo Stevens (Cardiff Central) (Lab)
The Minister has said on a number of occasions that the Government are taking tough enforcement action against employers who fail to pay the minimum wage, but between 2010 and 2018 in Wales there has not been a single successful prosecution resulting in a fine against employers for underpaying. This is not tough enforcement; it is impunity.
Kelly Tolhurst
The hon. Lady raises prosecutions as the only way of action or enforcement, but that is not true. I have said that since 1999 over £118 million has been paid back—to over 200,000 workers in 2019, so in just one year. It is true that there have been only 14 prosecutions. However, organisations are required to pay back the arrears, and pay a penalty, wherever a breach is found. I would like to highlight the fact that the Government have recently been consulting on salary sacrifice schemes. There have been examples in the media of workers being found to have a detriment through salary sacrifice schemes. This has been a key area in employers being caught under the national minimum wage legislation.