Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Business performanceEmployee relationsDepartment for Business and Trade (DBT)Latest NewsEconomics, government & business

Government plans to fine employers caught paying less than minimum wage

by Mike Berry 17 May 2007
by Mike Berry 17 May 2007

The government is to target cheating employers with a new regime of fines if they pay below the national minimum wage.

In a consultation, the government has proposed options including fixed penalty fines linked to the number of workers who are under-paid.

It also proposes that employers would have to pay interest, or other cash, to workers they have underpaid as well as repaying arrears.

Trade and industry secretary Alistair Darling said: “Paying less than the minimum isn’t only unfair to the workers, it’s unfair to the vast majority of employers who obey the law, because it lets rogue businesses undercut them.

“I want to give this simple message to bad employers: pay less than the minimum wage and it will cost you.”

The government has identified an estimated £22.6m in unpaid wages, but until now, employers have not been punished, as long as they pay up when they are caught.

The consultation will also look at enforcement of employment agency standards, seeking views on whether offences should be sent for trial in the Crown Court, and whether the Employment Agency Standards Inspectorate should be given clearer investigative powers to obtain financial information on suspects.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Tony Woodley, joint general secretary of the new Unite union, said: “Unions have made a strong case to government to address the precarious position of agency workers that is undermining fairness at work and social cohesion, so we welcome tougher sanctions against rogue employers and agencies.

“But enforcement of the national minimum wage and agency standards must be meaningful both to employers and workers including more resources for enforcement teams,” he said.

Mike Berry

previous post
Skills envoy Sir Digby Jones warns employers of the dangers of failing to rise to challenge of Eastern economies at Work Wise Summit
next post
Part-time women bear the brunt as number of unemployed rises to 1.7 million

You may also like

Government publishes ‘roadmap’ for Employment Rights Bill

1 Jul 2025

Ethnicity and disability pay gaps: Ready to report?...

1 Jul 2025

Government moves swiftly on immigration reform

1 Jul 2025

One in eight senior NHS managers from black...

1 Jul 2025

Government launches ‘landmark’ review of parental leave

1 Jul 2025

Clarks cuts 1,200 jobs after ‘year of transition’

1 Jul 2025

How HR can support families with adoption

1 Jul 2025

Co-op equal pay claims move onto next stage

30 Jun 2025

‘Be direct’ to avoid escalating conflict, advises Acas

30 Jun 2025

Reforming paternity leave could benefit UK by £13bn...

30 Jun 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+