National Minimum Wage clampdown on employers
The Department for Business, Innovation and Skills (BIS) recently announced the formation of HM Revenue & Customs’ (HMRC) new Dynamic Response Team to work on high-profile and complicated National Minimum Wage (NMW) cases investigated by HMRC.
One particular area to be targeted will be employers who pay migrant workers
below the NMW in an attempt to undercut competitors. The new team is to
be funded from a £70 million government fund raised by the introduction of a
levy on migrants and students coming to the UK from outside of the European
Economic Area, in addition to their normal visa application fee. Since April
2009, around 14,000 workers have had to be paid arrears of the NMW.
The NMW is reviewed every year by the Low Pay Commission and the NMW
rates of pay have increased every year on 1 October since the NMW was
introduced on 1 April 1999.