HMRC and the Department of Business and Innovation and Skills (BIS) are to launch a crackdown on companies not paying the minimum wage.
The move comes to set up records ahead of the plan to up the minimum wage as announced in the Summer Budget. The investigation will allow the BIS and HMRC to impose harsh penalties against any firm choosing to not pay staff the require salary for work in the UK.
Part of the sanctions will include larger penalties as well as suspensions from boards and director fines.
A change in the National Minimum Wage was announced in the Summer Budget with a significant rise applying to workers aged 25 and over. Under the new proposals from the government, the new national living wage, which is to rise to £7.20 soon, will rise to £9 per hour by 2020.
Although the Government’s living wage is considerably lower than that of the Living Wage Foundation many employers are still failing to play staff the minimum wage with some believing that a further increase in will result in a loss of many jobs as companies try and maintain profits.
Business Secretary Sajid Javid said: “There is no excuse for employers flouting minimum wage rules and these announcements will ensure those who do try and cheat staff out of pay will feel the full force of the law.
“This one nation government is committed to making work pay and making sure hardworking people get the salary they are entitled to.”
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