Minimum Wage

Treasury written question – answered at on 1 September 2014.

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Photo of Emily Thornberry Emily Thornberry Shadow Attorney General

To ask the Chancellor of the Exchequer

(1) what steps HM Revenue and Customs takes when an employer whom it has deemed to have underpaid the minimum wage absconds without repaying the money owed;

(2) what outstanding total of minimum wage arrears were unpaid because the employer had absconded in each of the last five years;

(3) how many times HM Revenue and Customs (HMRC) has encountered employers suspected of underpaying the minimum wage who (a) falsified documents, (b) obstructed the investigation and (c) had previously been found on previous occasions by HMRC or by an employment tribunal, to have underpaid on a previous occasion in each of the last five financial years.

Photo of David Gauke David Gauke The Financial Secretary to the Treasury

The Government takes the enforcement of the national minimum wage (NMW) very seriously. HMRC review every complaint that is referred to them by the Pay and Work Rights Helpline. In addition, by collating and analysing data received from various sources, HMRC ensure targeted enforcement through robust risk assessment processes to identify employers across the United Kingdom who are more likely to be not paying NMW.

The majority of employers identified as paying below national minimum wage will pay arrears on receipt of a formal notice of underpayment. Where they don’t, we will pursue recovery through the civil courts.

For deliberate non-compliance or obstructive behaviour, we investigate at a criminal level. This could include employers who abscond.

The statistics requested on absconded employers are not available, and HMRC does not routinely collect statistics on falsification and obstruction of investigation.

Of those employers prosecuted within the last five financial years, there were no incidences of previous underpayment of the national minimum wage. Employment tribunals are the responsibility of HM Courts & Tribunals Service.

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