PARLIAMENTARY WRITTEN QUESTION
Minimum Wage (14 July 2014)

To ask Mr Chancellor of the Exchequer, how many times HM Revenue and Customs (HMRC) has encountered employers suspected of underpaying the minimum wage who (a) falsified documents, (b) obstructed the investigation and (c) had previously been found on previous occasions by HMRC or by an employment tribunal, to have underpaid on a previous occasion in each of the last five financial years.

Asked by:
Emily Thornberry (Labour)

The Government takes the enforcement of the National Minimum Wage (NMW) very seriously. HMRC review every complaint that is referred to them by the Pay and Work Rights Helpline. In addition, by collating and analysing data received from various sources, HMRC ensure targeted enforcement through robust risk assessment processes to identify employers across the United Kingdom who are more likely to be not paying NMW.

The majority of employers identified as paying below National Minimum Wage will pay arrears on receipt of a formal Notice of Underpayment. Where they don’t, we will pursue recovery through the civil courts.

For deliberate non-compliance or obstructive behaviour, we investigate at a criminal level. This could include employers who abscond.

The statistics requested on absconded employers are not available, and HMRC does not routinely collect statistics on falsification and obstruction of investigation.

Of those employers prosecuted within the last five financial years, there were no incidences of previous underpayment of the National Minimum Wage. Employment Tribunals are the responsibility of HM Courts & Tribunals Service.

Answered by:
Mr David Gauke (Independent)
18 August 2014