Question

To ask the Secretary of State for Business, Innovation and Skills, what steps he is taking to ensure that employers comply with minimum wage legislation; and how many prosecutions there have been for non-compliance in each of the last five years.

The Government is committed to increasing compliance with National Minimum Wage legislation and the effective enforcement of it. HMRC responds to every complaint it receives and conducts risk-based enforcement in sectors or areas where there is perceived to be a higher risk of workers not being paid the National Minimum Wage.

The Government has increased the NMW penalty so that employers that break the law face a penalty equivalent to the arrears they owe, up to a maximum penalty of £20,000 per worker.

Employers are also named publically under the Government’s NMW naming scheme for non-payment. So far, 210 employers have been named for non-payment of the National Minimum Wage and have been charged financial penalties totalling over £248,000. In total, HMRC has recovered over £57m in arrears for workers since 1999/2000.

Prosecution is reserved for the most serious cases. HMRC will refer cases to the Crown Prosecution Service who will decide whether to prosecute. Prosecution does not necessarily result in arrears being paid to workers.

The number of NMW prosecutions for non-compliance in each of the last five years is set out below:

2014: 0

2013: 1

2012: 0

2011: 0

2010: 1

Anyone who thinks they might be entitled to the minimum wage but have not been paid it should call the ACAS Helpline on 0300 123 1100.