Fact Service June 2013

Issue 22

National Minimum Wage crackdown

Employment agencies in Corby, Northamptonshire, are being investigated by HM Revenue and Customs (HMRC) on suspicion of significantly underpaying employees due the National Minimum Wage, as part of a newly launched multi-agency taskforce to tackle migrant labour abuse.

A three-day operation in the town uncovered a possible £100,000 owed to 3,000 employees in the area. HMRC and the Department for Business, Innovations and Skills officers visited 34 employment agencies between 28 and 30 May 2013.

Michelle Wyer, assistant director of National Minimum Wage for HMRC, said: “This cross-government taskforce operation has allowed us to get into the heart of the community to tackle those employers who operate outside of the law and deliberately fail to pay the National Minimum Wage. We will not hesitate to use our full enforcement powers to ensure that workers receive the money to which they are legally entitled.”

HMRC can issue penalties of up to £5,000 to businesses found to be paying their workers less than the National Minimum Wage. They will also be required to pay any wage arrears at today’s National Minimum Wage rates.

Anyone who thinks they are not being paid the National Minimum Wage or has concerns about an employment agency or business can call the Pay and Work Rights Helpline on 0800 917 2368.

http://press.hmrc.gov.uk/Press-Releases/Corby-job-agencies-targeted-in-minimum-wage-blitz-68d7f.aspx