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Last Updated: Monday, 7 July, 2003, 16:07 GMT 17:07 UK
Payback time for underpaid workers
Cash
The government has tightened a legal loophole

Workers who have been paid less than the minimum wage by a previous employer will have a better chance of seeking redress, the government has announced.

An employment tribunal last summer exposed a loophole in the law which meant it was impossible for the Inland Revenue - the body responsible for enforcing the National Minimum Wage Act 1998 - to pursue firms on behalf of former workers.

The TUC said it would be a boost for workers who felt reluctant to complain while still working for the offending employer.

Brendan Barber, TUC General Secretary, said: "The minimum wage .... must be fully enforced. Our experience has been that many low paid workers only have the confidence to complain about underpayment after they have left the offending employer."

National Minimum Wage rates*
Aged 22 or over: �4.20 an hour (adult rate)
Aged 18-21: �3.60 an hour (development rate is also paid to workers aged 22 or over who are in the first six months of a new job or a new employer and receiving accredited training)

*Rates will increase on 1 October 2003

To date, the Revenue has so far clawed back �13m for workers who have not been paid the minimum wage.

Complaints list

Following the recommendations of the Low Pay Commission in March 2003, the minimum wage will rise in October for adults from �4.20 to �4.50, and the rate for 18-21 year olds will rise from �3.60 to �3.80.

Anyone who thinks they are not being paid the minimum wage is being advised by the government to contact the enforcement helpline on 0845 6000 678 or use the government's Tiger.gov.uk website (see link on right).

Employment Relations Minister Gerry Sutcliffe said: "This new legislation restores the position following an adverse tribunal ruling last year, and will ensure that the Inland Revenue can again take enforcement action in all complaint cases for former workers.

"The national minimum wage is one of the Government's finest achievements, but we are not complacent when it comes to enforcing the rules and, where necessary, we will tighten them up."




SEE ALSO:
UK workers win consultation rights
07 Jul 03  |  Business
Long hours relief for UK workers
04 Jul 03  |  Business


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