£4 million won from minimum wage cheats

Over 26,000 workers denied the National Minimum Wage by their employers have received £4 million in back pay, after action by HM Revenue and Customs (HMRC).

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 and 26,519 employees receiving an average of £300 in back pay, topping up wages that had previously been below the legal minimum rate.

“These investigations show why more resources must be put into catching minimum wage cheats,” said TUC general secretary Frances O’Grady. “As well as handing out fines, the government must publicly name and shame all those rogue employers who knowingly underpay their staff.”

As nearly a million UK workers rely on the National Minimum Wage , the action taken by HMRC “must be the beginning of a concerted campaign that also raises awareness about the right to a legal wage among those being exploited,” she said.