Tulip Siddiq – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Tulip Siddiq on 2015-12-17.

To ask Mr Chancellor of the Exchequer, with reference to the Answers of 6 May 2014 to Question 197359, 12 September 2014 to Questions 205613 and 218085, and pursuant to the Answer of 26 November 2015 to Question 16851, (a) under what circumstances HM Revenue and Customs identify non-compliance with minimum wage enforcement without (i) recovering arrears in unpaid wages from workers and (ii) issuing penalties to employers, (b) what mechanisms are in place to ensure that an employer for whom non-compliance has been identified has paid back minimum wage arrears without the need for a penalty to be issued or fine to be imposed, (c) how much money in unpaid wages was identified following HM Revenue and Customs investigations in each year since 2009-10 and (d) how many employers agreed to pay all arrears following a finding on non-compliance before a penalty was issued in each year since 2009-10.

Mr David Gauke

The Government is determined that everyone who is entitled to the National Minimum Wage (NMW) receives it. Anyone who feels they have been underpaid NMW should contact the confidential Acas helpline on 0300 123 1100. HM Revenue and Customs (HMRC) review all complaints that are referred to them. Non-compliant employers are issued with a Notice of Underpayment (NOU) detailing the arrears they owe workers and the penalty due. The employer will pay the arrears directly to the worker and the penalty to the Government. HMRC takes steps to ensure that workers receive the arrears to which they are entitled; I refer the honourable member to the answer provided at UIN 211605 on the action taken by HMRC where arrears are identified. A penalty will be issued on the NOU except in exceptional circumstances. To encourage voluntary compliance, where an employer has identified non-compliance outside of an HMRC investigation and notified of their intention to self-correct and pay arrears, for example through HMRC’s NMW Campaign in the hair and beauty sector, HMRC will not impose a penalty. For information on arrears identified, I refer the honourable member back to the answer provided at UIN 16851.