9th January 2007  For immediate release

Crackdown on Rogue Employers

Local MP John Healey has today urged local firms, trade unions, churches and community groups to help crackdown on unscrupulous employers getting an unfair advantage by breaking minimum wage law.

John Healey MP who campaigned for a minimum wage before he was elected to Parliament and then served on the legislation committeee which scrutinised the new legislation said:

“Nearly every business in Rotherham does exactly what’s required by law – but the campaign is to stop those who pay ilegal wages and make an unfair profit by trying to dodge the minimum wage. I’ve spent many years campaigning for a minimum wage, then pressing the Government to keep on increasing it up to £5.35 an hour – helping 140,000 people in Yorkshire and I don't want to see anyone get away with paying illegally low wages in the Rotherham area."

“With new powers announced today, employers that refuse to pay up can end up with a criminal record and a £5,000 fine.  If you know someone who isn’t getting what they’re owed, make sure they get in touch with HM Revenue & Customs on 0845 6000 678."

Further information on the National Minimum Wage can be found on the HM Revenue & Customs website: http://www.hmrc.gov.uk/nmw/

~ ENDS ~ 

Notes to Editors:

1. From October 2006, the National Minimum Wage rose to £5.35 per hour today, benefiting over 1.3 million workers, including 140,000 in Yorkshire.
2. Before the National Minimum Wage was introduced, wages of as little as £1.20 per hour were common and legal.
3. If a complaint against an employer is upheld and the employer will not pay then they are given a warning to repay the arrears within seven days.  Those employers who do not pay within seven days risk a criminal record and a £5,000 fine. The minimum penalty an employer could face will be £224.70, for defaulting on an enforcement notice which named one worker.
4. From October 1st 2006:

• The adult rate increased from £5.05 to £5.35 per hour
• The 18-21 year old rate increased from £4.25 to £4.45
• The 16-17 year old rate increased from £3.00 to £3.30

  For more information please contact Joanne Wilson, Research Officer to John Healey MP on Tel: (01709) 512463