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27/11/2008
Mandelson 'to get tough on minimum wage cheats' |
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Business secretary Lord Mandelson has vowed to crack down on businesses that flout the law when it comes to paying employees.
The government has launched a new campaign to ensure that all workers enjoy their legal right to be paid at least the minimum wage.
From next year, organisations will face unlimited fines for the most serious breaches of regulations, instead of the current maximum fine of £5,000.
Lord Mandelson claims that more than "one million workers" benefited from last month's increase and although most businesses "treat staff fairly" there are a small number who flout the law and "cheat their workers" as well as honest competitors.
"Our changes will make sure everyone caught not paying their workers properly faces a stiff penalty - we are determined to ensure workers are paid fairly," he added.
At present the statutory hourly rate for workers aged 22 and over is £5.73. It is £4.77 for 18 to 21-year-olds and £3.53 for those aged 16 and 17.
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