Minimum wage repayments top £4 million in two years

Nearly £3 million in wage arrears was recouped by minimum wage compliance officers in the 12 months to March 2001.

Since the introduction of the minimum wage, in April 1999, employers have been forced to pay just over £4 million in wage arrears according to the latest report on compliance by the Inland Revenue and Department of Trade and Industry. The average payment of arrears has more than doubled from over £205 to over £418.

Although the number of complaints fell to 1,835 in 2000-2001 from 2,919 the previous year, the number of enquiries launched by enforcement officers rose from 6,041 to 7,256. Complaints from those aged 22 and over fell, but complaints from those aged 18-21 rose significantly, in part due to a publicity campaign during May to August 2000. A breakdown by sector shows that market services, which includes garages and taxi firms attracted the most complaints followed by the hospitality and retail industries.

Examples of underpayment identified by compliance officers include a qualified Belfast hairdresser who was working 40 hours a week for £1.90 an hour. The worker left this job for one that paid £2.70 an hour.

Inland Revenue compliance officers won back over £100,000 for a group of Asian workers in London, over £140,000 for homeworkers at an industrial company on the south coast and £80,000 for workers at a brewing company in the north west.

The minimum wage for workers aged 22 and over rises to £4.10 an hour from 1 October 2001.