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Hospitality bosses who underpay staff face Government crackdown team

05 January 2010 by
Hospitality bosses who underpay staff face Government crackdown team

The Government has created a team to crack down on employers who continually refuse to pay their workers the National Minimum Wage (NMW).

The hospitality industry is a persistent offender when it comes to underpaying staff, with HM Revenue and Customs' (HMRC) recouping more than £640,000 worth of wage arrears from employers in the sector since April.

HMRC's Dynamic Response Team will work on the most high-profile and complicated cases, particularly in areas where employers use migrant labour to undercut competitors by paying below the minimum wage.

The team will be funded from a £70m government fund, paid for by a levy on migrant workers, payable when they apply for a visa.

It will be made up of highly-trained specialist officers who will work with other government departments and local authorities to ensure the most effective action is taken to deal with non-compliant employers, including civil and criminal prosecutions.

In October 2009, the National Minimum Wage increased to £5.80 for those aged 22 and over, £4.83 for those aged 18 to 21, and £3.57 for 16- and 17-year-olds.

Business minister Pat McFadden said: "Evasion hurts both workers and responsible employers who play by the rules, so we are stepping up our fight against non-payment of the minimum wage.

"The minimum wage is a key part of the Government's strategy to establish fairness in the workplace and the benefits of the minimum wage are felt by about one million workers every year, especially women and part-time workers."

Government ‘terribly ineffective' in tackling underpaying hotel bosses >>

Sodexo underpaid ‘tens of thousands' of staff >>

Hospitality workers still being cheated out of minimum wage >>
Catering staff among the least satisfied workers, finds report >>
Keeping staff still a problem in hospitality >>

By Daniel Thomas

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