Hotels face crackdown on minimum wage

10 September 2007 by
Hotels face crackdown on minimum wage

The Government is planning to crackdown on hotels that do not pay the minimum wage in a campaign that will extend to the entire hospitality sector next year.

The campaign kicks off this month with a direct mail-out to hotel employers, informing them about minimum wage rules and the relevant rates and addressing issues relevant for the sector, such as charging workers for accommodation.

After allowing some time for the message to bed in and for employers to be able to rectify any problems themselves, Revenue and Customs enforcement officers will then begin visiting companies within the sector to check that they are complying with the law. Those that are found flouting the law risk criminal prosecution and fines of up to £5,000.

Earlier this year, the Government vowed to increase the resources devoted to national minimum wage enforcement by nearly £3m a year. The first minimum wage criminal prosecution case came before the courts last month, when a children's nursery owner was fined £2,500. The total amount recovered from employers since the introduction of the minimum wage in April 1999 now stands at more than £22m.

From 1 October, the rate will be raised for 18 to 21 year olds by 15p to £4.60 per hour. For adults over 22 it will rise form £5.35 to £5.52.

Tips can count towards minimum wage, finds tribunal >>

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Hospitality backs tougher stance on minimum wage >>

Paying less than national minimum wage will be penalised >>

By Daniel Thomas

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