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Written question asked by Chuka Umunna (Labour) on Monday, 4 November 2013, in the House of Commons. It was due for an answer on Wednesday, 6 November 2013. It was answered by David Gauke (Conservative) on Monday, 11 November 2013 on behalf of the Treasury.

Minimum Wage: Employment Agencies

Question

To ask the Chancellor of the Exchequer how many recruitment agencies HM Revenue and Customs has identified that are breaching national minimum wage regulations by charging workers for insurance cover in the latest period for which figures are available; and what enforcement action HM Revenue and Customs has undertaken.

Answer

The Government takes the enforcement of NMW very seriously and HMRC review every complaint that is referred to them, investigating the complaint and, in addition, carrying out targeted enforcement where we identify a high risk of non-payment of NMW.

HMRC records information by Standard Industry Codes (SIC). Under the SIC division for Employment Activities, 20 investigations were completed in 2012-13 where workers were owed arrears. HMRC does not hold its management information in a format that will identify the specific reason for underpayment of minimum wage.

Where arrears due to non-payment of the minimum wage are identified, a formal notice of underpayment is sent to the employer. HMRC contacts every employer whom they find has paid workers below the national minimum wage to confirm that they have paid the identified arrears to the workers. In addition, where arrears are found for five or less workers HMRC will contact all the workers to confirm payment by the employer. In cases involving arrears for more than five workers HMRC will contact a minimum sample of five workers to confirm payment by the employer.

Secondary information

Type
Written question
Reference
174542; 570 c465W
Session
2013-14
Subjects
Insurance Employment agencies Minimum wage
Link
View this Written question on www.publications.parliament.uk