The minimum wage scandal

[BankFodder]

Staff 'not getting minimum wage'

 

The minimum wage is £5.52 an hour for adults

 

Thousands of workers are being short-changed by firms who refuse to pay the national minimum wage, a survey for union organisation the TUC found. Around 150,000 staff are being denied rate of £5.52 an hour for adults and £4.60 for 18 to 21-year-olds, it says.

Those in restaurants, hotels, cleaning, hairdressing and childcare were said to be the most likely to be underpaid.

A TUC helpline for staff has been set up. Earlier this month, ministers said firms would face tougher penalties.

Companies will now risk unlimited fines, with the most serious cases of non-compliance tried in a Crown Court. The way arrears are calculated will also change, boosting the amount of back pay due to underpaid employees.

'Scrooge employer'

The TUC said the exploitation was "unacceptable", especially at Christmas when workers face greater financial pressures.

TUC general secretary Brendan Barber said: "There should be no hiding place for bosses who are deliberately cheating their workers out of the minimum wage.

"If you know somebody who is not being paid the minimum wage, now is the time to help them. If you know a Scrooge employer who is not paying workers a decent wage for a fair day's work, now is the time to report them."

The TUC said it had been contacted by a homeworker paid between £2 and £3 an hour, and a Polish man working in a pizza store for a similar wage.

Employers can be reported to the minimum wage helpline on 0845 6000 678.

BBC NEWS | UK | Staff 'not getting minimum wage'

[BankFodder]

But please do not identify the employer concerned until the matter has been formally established by the appropriate authorities.

 

Until that moment, please use a false identifier. This is because it would be unfair to an employer if the matter has not yet been proved, we might find ourselves having to deal with allegations of defamation - and of course it is much better that an employer who is not paying the minimum wage is not alerted that he is being reported.

[BankFodder]

Although minimum wage problems are more suited to being in the employment forum, it seems to be a good idea to make the subject a bit more prominent on this site.

 

Hence it now has it's own top level forum. We'll see how this forum develops.

[Conniff]

And it will continue until the workers take the bull by the horns and report their employer.

I'm sure a report could remain confidential until an investigation has been initiated.

[sam247]

If the tories win the next election (which seems likely) we must all fight to ensure it is not to the detriment of the lower paid.

Edited January 13, 2010 by MARTIN3030

[honest_broker07]

What we really need ATM and IMHO ( OK will get shot for this )

is that no-one on benefits gets more than 2 adults would on minimum Wage.

I'm fedup of seeing people getting more in benefits than they could by working

[Conniff]

What we really need ATM and IMHO ( OK will get shot for this )

is that no-one on benefits gets more than 2 adults would on minimum Wage.

I'm fedup of seeing people getting more in benefits than they could by working

 

And when they have the equivilent of 2 adults on minimum wage, they should also have to pay full council tax and not have any rent allowance.

[Conniff]

If the tories win the next election (which seems likely) we must all fight to ensure it is not to the detriment of the lower paid.

 

They have already said that they will raise the threshold for income tax which would probably take the lower paid out of the tax bracket all together. They have also said they will freeze council tax for 2 years.

[honest_broker07]

The figure I'm using is £12,000 per year Minimum Wage ( 5.80 * 40 hrs * 52 Weeks) less tax and NI say £10,000.

 

So how I'd see it is a Couple on benefits should not get more than £20,000 a year otherwise they would be penalised by working.

[honest_broker07]

Conniff

 

Agreed !

[scaniaman]

What is the position with very small businesses where the employer can't afford to pay minimum wage? Under these circumstances some employers themselves don't get £5.25 for every hour they work.

[jqinfo]

What is the position with very small businesses where the employer can't afford to pay minimum wage? Under these circumstances some employers themselves don't get £5.25 for every hour they work.

 

I have a small business and do not get that ever, but I accept that it is part of building my own business! However, another group under valued are the carers of this world who get Carer's Allowance £53.10 for a minimum of 35 hours caring! £1.52 per hour! How valued does that make them feel for all the dedication and hard work, when you can get that for sitting on your behind doing nothing?

 

JQ

[angryweasel]

What is the position with very small businesses where the employer can't afford to pay minimum wage? Under these circumstances some employers themselves don't get £5.25 for every hour they work.

 

 

I'm afraid it's like everything else you can't afford - you go without.If your "employees" can be classed as self employed though, I believe that's different?