HMRC have issued a warning to employers about
their programme of targeted enforcement of
national minimum wage (NMW) procedures. The
programme, which is now in its third year,
was introduced to work with employers and
workers to address issues and concerns around
the NMW.
They are proposing to target the hotel sector
which employs a large number of migrant workers.
The programme is expected to run for 12 months
from November 2007. They propose to target
the hospitality sector more generally throughout
2008/09.
HMRC have reminded employers that failure
to meet obligations under the National Minimum
Wage Act constitutes a criminal offence and
could result in a heavy fine.
It is a criminal offence to:
- refuse or wilfully neglect to
pay the NMW
- fail to keep or preserve records
- cause or allow false entries in records
- produce or furnish false records
or information
- delay or obstruct an HMRC compliance
officer
- refuse or neglect to answer any
questions or produce documents for an HMRC
compliance officer.
HMRC are willing to use their powers under
the NMW legislation as the following case illustrates.
Landmark NMW case
At the end of August, a children's nursery
owner was fined £2,500 and ordered to
pay £500 costs in the first NMW criminal
prosecution case.
The owner of the day nursery, which was based
in Walthamstow, pleaded guilty to a charge
of obstruction at the Magistrates' Court. She
had apparently prevented compliance officers
from seeing employee records. The compliance
officers were trying to find out whether nursery
workers were being paid the correct amount
under the NMW legislation.
Judge Gott commented that the owner had "demonstrated
a clear and deliberate intent to obstruct officers
and this was a scandalous breach of the National
Minimum Wage legislation."
Andy Millican, the Criminal Investigations
team leader said:
"This prosecution sends a clear message
to employers that we will actively pursue those
we suspect of flouting National Minimum Wage
law … We have a duty to ensure workers
receive their salary entitlement. If employers
obstruct us and refuse to comply with the law
they could receive a fine and a criminal record."
National Minimum Wage (NMW) rates rose with
effect from 1 October 2007. The current rates
are:
Adult rate (workers aged 22 and over) £5.52
Development rate for 18-21 year olds £4.60
Development rate for 16-17 year olds £3.40
Internet link:
Employers
Bulletin and NMW
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