GOVERNMENT ACCEPTS LOW PAY COMMISSION’S RECOMMENDATIONS FOR THIS YEAR’S ADULT AND YOUTH NATIONAL MINIMUM WAGE RATES
16 April 2013
The government has accepted the independent Low Pay Commission’s (LPC) recommendations for this year’s adult and youth National Minimum Wage (NMW) rates.
However, the government has concluded that the apprentice rate should be increased rather than frozen as recommended by the LPC. The LPC based this recommendation on concerns about level of compliance with the apprentice rate. The LPC recommended that the government should combine a communications campaign and a targeted enforcement initiative to ensure that the Apprentice Rate is known to employers and apprentices, and to ensure that infringers are caught, punished, and where appropriate, named.
The following rates will come into effect on 1 October 2013: the adult rate will increase by 12p to £6.31 an hour;
the rate for 18-20 year olds will increase by 5p to £5.03 an hour; the rate for 16-17 year olds will increase by 4p to £3.72 an hour; the apprentice rate will increase by 3p to £2.68 an hour; and the accommodation offset increases from the current £4.82 to £4.91
NOT PAYING THE NATIONAL MINIMUM WAGE DOESN’T PAY
31 May 2013
HMRC has published news of their compliance action in 2012-13 against employers who were investigated for alleged breaches of the minimum wage rules.
In 2012-13, HMRC investigated 1,693 complaints against employers for allegedly breaching minimum wage rules. This resulted in 708 employers receiving automatic penalty charges of up to £5,000, with 51 of those employers being penalised to the maximum of £5,000.
26,519 employees received an average of approximately £150 in back pay, topping up wages that had previously been below the legal minimum rate.
Employment Minister Jo Swinson said:
"Paying less than the minimum wage is totally unacceptable. Whenever we find examples of businesses breaking the law we will crack down on them.
"Supporting fairness in the workplace is one of our key priorities and the National Minimum Wage is one way of making sure this happens. It supports as many workers as possible without damaging their employment prospects, which is why effectively enforcing the minimum wage is critically important in making sure it stays a success.
"The figures from last year show that HMRC can really help people who have been underpaid to claim back the money they are owed.”
Cases where HMRC has taken action against employers in the past year:
- A major fashion chain was ordered to pay its 90 unpaid interns almost £60,000.
- A multi-outlet retailer, which required employees to purchase specific items of clothing from its range, was ordered to repay almost £170,000 for more than 6,000 workers.
CIPP Policy News Journal
16/04/2014, Page 244 of 519
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