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HMRC catches only 13% of paying companies below minimum wage – The Guardian, Theguardian.com

HMRC catches only 13% of paying companies below minimum wage – The Guardian, Theguardian.com


There are fears an inflation-busting rise in April will tempt more bosses to break the law

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************************** (******************************** (************************************************************** () ******************************** (**************************************** (**********************************************************There has been a sharp rise in the number of firms underpaying staff. Photograph: Peter Macdiarmid / Getty Images (******************************************

Thousands of bosses who pay workers less than the minimum wage are getting away with breaking the law, with only one in eight caught by government inspectors, research shows.

There has been a sharp rise in the number of low-paid workers cheated of wages. An estimated (************************************************************************************************************, firms failed to pay the minimum wage in 2018 – 24, according to analysis of official figures by the Resolution Foundation thinktank. However, HM Revenue and Customs inspectors identified only 1, of the lawbreakers and there are fears an inflation-busting rise in the minimum rate in Aprilmay tempt more employers to break the rules.

About one in five workers aged over was paid below the legal minimum in (**********************************************************, but that rose to one in four last year with about (*************************************************************************, people missing out.

People working for small firms such as hair salons and carwashes are most vulnerable to being underpaid, described by unions as “wage theft”, but it is estimated that around 220, workers for companies with more than (employees were also underpaid in April (********************************************************************. Bristol City Football Club, Wyvale Garden Centers, Costa Coffee and Odeon cinemas were among those caught failing to pay workers enough in (**********************************

Lindsay Judge, a senior policy analyst at the Resolution Foundation, said there had been “a worrying rise in minimum wage underpayment”.

“As the government plans to increase the legal wage floor, it is essential to strengthen the incentives for firms to comply,” she said. “The government can act today by encouragingHMRCto take a tougher line with minimum wage offenders, and being given the power to levy larger financial penalties. ”

The minimum hourly wage for workers aged over (will rise 6.2% to £ 8.) per hour in April. Currently, rule-breakers are allowed to simply repay the wage arrears and fines issued by employment tribunals are discounted for early repayment – meaning the average penalty in – 20 was only worth about 90% of the wage arrears owed. The availability of self-correction in effect means that in many cases employers can underpay wages with no financial consequences even if they are caught.

Guardian graphic.A government scheme naming and shaming employers caught paying under the minimum wage was suspended in December 3766 amid concern from firms some were being shamed on technical rather than deliberate breaches. No firms have been named in months.

“The number of workers covered by the minimum wage is set to double,” said the TUC’s general secretary, Frances O’Grady. “Resources for enforcement must be scaled up to match the growing size of the task. Otherwise it will become easier for bosses to cheat staff out of pay without getting caught. ”

A government spokesperson said: “HMRC will not hesitate to take action to ensure that workers receive what they are legally entitled to ,.” It added that in 2018 – (it completed more than 3,Wage slip.************************************************************************************** (investigations, identifying £ m in arrears for more than (**********************************************************************************, workers.

The government is also considering plans for a new single labor market enforcement body, which it says could strengthen protections for workers and ensure a level playing field for business.

The minimum wage has been rising steadily since it was introduced years ago and until compliance was thought to be rising. But since the introduction of the £ 7. (national living wage for aged workers over) **************************************************************************************************** (in**************************************, more employers have been underpaying workers.

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