Minimum wages should be enforced by introducing penalties, said the Trades Union Congress (TUC) today.
While the minimum wage for adults (22 and over) stands at £5.35 per hour, current government legislation is such that employers have no incentive to pay the minimum wage, the unions have argued.
As a result the TUC is calling for stricter measures to be enforced, as current figures show that 95% of employers who pay less than the minimum wage, pay back only what is owed if they are caught. There is no fining system in place to dissuade corrupt employers.
Frances O’Grady, the TUC general secretary, said the government “needs to come down far harder on unscrupulous employers who are constantly flouting the law and underpaying their workers”.
She added: “The TUC wants the government to introduce an immediate penalty of £100 per worker for all employers caught failing to pay the minimum wage.”
The TUC also backs government proposals that aim to strengthen the power behind Employment Agency Standards (EAS) inspectors. The measures include giving the EAS greater access so that inspections can be carried out more effectively and holding offenders’ trials in the Crown Court rather than magistrates courts.
A TUC survey from May 2007 found that a large amount of agency workers are unaware of the EAS inspectorate's existence. For more information, call the EAS helpline on 0845 955 5105.
© Crimson Business Ltd. 2007
