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Welcoming the announcement today (Friday) by Employment Relations Minister Jo Swinson that employers who fail to pay the minimum wage are to be publicly named.

date: 23 August 2013

embargo: For immediate release

Welcoming the announcement today (Friday) by Employment Relations Minister Jo Swinson that employers who fail to pay the minimum wage are to be publicly named, TUC General Secretary Frances O'Grady said:

'It is right to name and shame minimum wage rogues, so that other employers who think they can get away with paying illegal poverty wages get the message loud and clear that cheating does not pay.

'At the moment all employers who have been found guilty of cheating workers out of a legal wage have to pay a financial penalty, but as this takes place behind closed doors, justice is not seen to be done.

'But naming and shaming won't be enough to deter those employers who think they are above the law. Only a handful of employers have been taken to court since the minimum wage was introduced in 1999, yet over the years thousands of workers have complained to the minimum wage helpline that they are being ripped off.

'Employers need to know that there will be no hiding place if they break the law. The government must put more money into enforcement so that there are fewer places for even the most determined minimum wage cheats to hide.

'We need to see more prosecutions and much higher fines imposed so that minimum wage crimes become a thing of the past.

'If we are to build a strong and sustainable recovery which benefits all working people, our vision must reach far beyond the minimum wage, which after all is just a floor on pay. Ministers should encourage all employers who can afford to pay a living wage to do so, and consider the introduction of new wages councils to press for decent pay rates across the economy.'

NOTES TO EDITORS:

- Even though every employer who is caught cheating on the minimum wage has to pay a financial penalty to government, as well as paying back what they owe their workers, this happens out of the public gaze. This is because enforcement to date has been largely invisible, as it is largely conducted by civil penalties, which are not in the public domain.

-The last government introduced a naming and shaming policy in 2009, so that there would be a stronger deterrent for rogue employers, but the criteria were set so tightly that no employer could be named during their tenure. The coalition government overhauled the procedure in 2011, but has so far only been able to name one small employer.

-The TUC's assessment has always been that the criteria for naming and shaming have been set so tight as to stop the policy from working.These criteria involved the employer having committed an offence that would be prosecutable under the National Minimum Wage Act 1998, plus a high financial threshold for arrears.

-The new rules launched today remove all these qualifications, although there will still be safeguards to ensure that employers are treated fairly. The TUC's view is that the new policy should allow the government to name several hundred minimum wage cheats every year, which we would support.

- Workers who wish find out more about the minimum wage should call the HMRC Pay and Work Rights Helpline on 0800 917 2368.

- The TUC's campaign plan can be downloaded from www.tuc.org.uk/campaignplan

- All TUC press releases can be found at www.tuc.org.uk

- Congress 2013 will be held at the Bournemouth International Centre from Sunday 8 September to Wednesday 11 September. Free media passes can be obtained by visiting www.tuc.org.uk/media_credentials and completing an online form. Applications must be in by noon on Wednesday 28 August. Any received later than that will be processed in Bournemouth and will cost £75.

- Follow the TUC on Twitter: @tucnews

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk

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