Fact Service July 2011

Issue 27

Lack of prosecutions over minimum wage

Despite nearly three and a half thousand poorly paid workers in Wales getting less than the minimum wage since 2002, not one single prosecution has resulted, says Leanne Wood, the Welsh Assembly (AM) member for South Wales Central.

The scandal involves more than a thousand employers who have made underpayments of nearly £1.5 million. It seems Cardiff employers are the worst offenders, with Swansea and Llandudno following close behind. The worst industry for underpaying employers is the hospitality sector.

Plaid Cymru AM Wood said: “Low paid workers must be protected, but the law must be brought down as hard on employers as it is with benefit fraud. Why are prosecutions not brought against employers? Why are benefit claimants and rogue employers not treated the same?”

She went on to say she had approached the government and had received assurances that Her Majesty’s Revenue and Customs would press for prosecution where there is clear evidence that an employer has committed an offence. Despite these assurances, nothing to date has happened.

www.now-cardiff.com/news/welsh-low-pay-workers-cheated-by-employers/764/