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Minimum wage clampdown 'welcomed by most businesses'

Published On 18 May 2007 at 12:04:51

Business organisations have welcomed government plans to increase the fine small and medium-sized enterprises (SMEs) pay if their employees do not receive the minimum wage.

Earlier this week, trade and industry secretary Alistair Darling revealed that businesses will now face fixed-penalty fines which are linked to the number of underpaid workers they employ.

"Paying less than the minimum isn't only unfair to the workers - it's unfair to the vast majority of employers who obey the law, because it lets rogue businesses undercut them," explained Mr Darling.

"I want to give this simple message to bad employers: pay less than the minimum wage and it will cost you. The vast majority obey the law already.

In response to the new initiative, David Frost, the director general of the British Chambers of Commerce (BCC), said: "We fully support the government's actions in clamping down on rogue businesses who seek to undercut the minimum wage.

"Firms who flout minimum wage regulations are providing unfair competition for the vast majority of employers who do not break the law and consequently have to charge higher rates."

For workers aged over 22, the national minimum wage is currently £5.35 per hour.

 

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