No Welsh employers have been prosecuted for paying staff less than the minimum wage since the Tories came into power nearly seven years ago.
Since the National Minimum Wage (NMW) was introduced in 1999 it has undoubtedly stood to improve the wages and therefore the lives of hundreds of thousands of employees within the UK. In April 2016, the NMW was replaced for over 25s with the National Living Wage; currently set at £7.20 per hour.
As well as introducing this increased minimum standard, the government also confirmed that they would bolster HMRC’s resources with a dedicated team of Minimum Wage investigators, increased budgets and stronger enforcement powers to ensure businesses complied.
Despite this apparent move towards more stringent enforcement, Wales Online has today released a story confirming that not one employer within Wales has been prosecuted for a breach of the legislation during the current governments reign. This is despite the same news agency reporting on some 400 Welsh companies allegedly in breach back in 2014.
The lack of prosecutions does not mean that HMRC have failed to intervene to recover money for employees; The lack of prosecutions means there is little deterrent to unscrupulous employers pushing the boundaries of what they can pay staff and such behaviour unfortunately continues.
The Shadow Secretary of State for Wales, Jo Stevens, has described this shortfall as a “complete disgrace”.
Why Aren’t Companies Paying Minimum Wage?
It is not always so easy for employees to calculate if they are receiving less than the minimum wage where they work atypical hours, for instance on call, overtime or travelling for work purposes.
What sadly goes hand in hand with a failure to meet minimum wage legislation is often a failure to ensure other statutory rights of employees are upheld; such as written statements of employment particulars or compliance with the Working Time Regulations.
Employees who are concerned about the conditions which they work under are advised to take early, independent advice to ensure that they are being treated fairly.
Speak to an Employment Solicitor at Howells
The employment team at Howells Solicitors specialise in giving such advice and would be happy to discuss any concerns with you in confidence.
Contact our employment solicitors team by calling 0808 178 2773 or learn more by clicking here.
