Minimum Wage: Non-payment

(asked on 15th December 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how many businesses have fined following court proceedings brought by HMRC in relation to non-payment of the national minimum wage in each of the last ten years; and what the sum total was of those fines in each of the last ten years.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 22nd December 2020

HMRC enforce the National Minimum Wage (NMW) and National Living Wage (NLW) in line with the law and policy set out by the Department for Business, Energy and Industrial Strategy (BEIS).

A majority of NMW cases are subject to civil (non-criminal) sanctions, which include penalties of up to 200% of the arrears, and public naming and, for the worst offences, criminal prosecution. Prosecution does not guarantee payment of arrears to workers, can be lengthy, is expensive for the taxpayer, and is generally reserved for the most serious cases that form part of a pattern of wider criminality. Cases are referred to the Crown Prosecution Service who decide whether or not to prosecute.

HMRC have a strong enforcement record on NMW and since 2010-11?have completed nearly 25,000 NMW investigations, identifying over £100 million in national minimum wage arrears for over 950,000 workers and levying more than £59 million in penalties.

The table below provides figures for businesses that HMRC have investigated, prosecuted and the amount of fine imposed following a prosecution, totalling £27,423 for breaches of National Minimum Wage legislation since 2010.

Year

Number of businesses investigated

Number of prosecutions

Fines for prosecuted employers

2010 - 2011

2901

1

£3,696

2011 - 2012

2534

0

£0

2012 – 2013

1696

1

£1,000

2013 – 2014

1455

0

£0

2014 – 2015

2204

0

£0

2015 – 2016

2667

0

£0

2016 – 2017

2674

4

£19,500

2017 – 2018

2402

1

£2,977

2018 – 2019

3018

0

£0

2019 - 2020

3376

1

£250

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