Catherine West – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Catherine West on 2016-07-13.

To ask Mr Chancellor of the Exchequer, how many prosecutions have been brought against companies which have failed to pay the national minimum wage in each of the last five years.

Jane Ellison

The majority of employers identified as paying below National Minimum Wage pay arrears on receipt of a formal Notice of Underpayment. Employers are charged penalties of up to 200% of the arrears due and‎ considered by the Department for Business, Energy and Industrial Strategy (BEIS) for naming. This provides the most effective resolution for those who have been underpaid and helps ensure the arrears due to them are paid. In line with the prosecution policy set out by BEIS, criminal investigations are reserved for the most serious cases. The number of cases brought for prosecution for non-compliance in each of the last five years is set out below:

Each case resulted in conviction. There has been one further successful prosecution to date in 2016/17. During the last year, HM Revenue and Customs have also set up a specialist enforcement team to investigate serious non-compliance and identify the worst offenders for possible criminal investigation. The team works closely with other agencies to tackle labour market abuse and serious worker exploitation.