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Last Updated: Thursday, 25 September, 2003, 14:46 GMT 15:46 UK
Firms still flout minimum wage
Stressed workers
Four years on: Workers are still missing out
More than �3.5m in unpaid wages from employers flouting minimum wage rules was uncovered last year, the government has said.

Investigation successes included recovering more than �1,000 in back wages for a disabled worker who was paid less than her colleagues, because she was slower in her work.

Almost �13m in unpaid wages has been uncovered from rogue employers since the minimum wage was introduced in 1999.

On 1 October the minimum wage will go up, increasing the main rate to �4.50 an hour.

Publicity campaign

Less was recovered in unpaid wages last year, but the government said enhanced investigation teams meant the Inland Revenue, responsible for enforcing the wage, carried out more than 500 extra enquiries last year.

Helplines
England and Wales: 0845 6000678
Northern Ireland: 0845 6500207
Scotland: 0845 6001768

The greatest number of complaints were in the retail and hospitality industries and among market workers.

The investigations work uncovered cases including:

  • Three female workers who had not had a pay rise for five years. An investigation discovered that neither they nor their employer were aware of the minimum wage. They shared �9,343 in back wages

  • A lottery winner employing a domestic worker was paying below the minimum wage. The worker received �1,205 in back wages

  • A building worker was paid less than �2 an hour, although a skilled worker. The worker was paid �14,000 in back wages

  • Cafe staff paid in free meals and drinks to make up for any shortfall in wages. Nine underpaid workers were entitled to share more than �11,000

    Minimum wage rates
    Adult rate: �4.20 an hour (people aged 22 and over) rising to �4.50 an hour from October
    Development rate: �3.60 an hour (people aged 18 - 21) rising to �3.80 an hour from October

  • A graphic designer who was not paid the minimum wage because he was classed as a trainee, even though he wasn't receiving formal training. He received �300 in back payments

Employment Minister, Gerry Sutcliffe, said: "There is no room for complacency when it comes to enforcing the minimum wage but these latest figures show that we are winning the war against rogue employers.

"Anyone who thinks they are not being paid the minimum wage should call the minimum wage helpline on 0845 6000 678."

The amount of money being reclaimed from employers should stay steady or increase over the next few years.

This is because new legislation introduced in July this year allows the Revenue to take claims against a worker's former employer.




SEE ALSO:
Payback time for underpaid workers
07 Jul 03  |  Business
Low pay crooks dodge the law
19 Mar 03  |  Business
UK minimum wage rises
30 Sep 02  |  Business


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