Guest 640- Registered: 21 Apr 2007
- Posts: 7,819
Care sector workers are in line for nearly £340,000 in back pay as a result of investigations
...by HM Revenue and Customs (HMRC).
More than 2,400 workers in the care sector were underpaid the National Minimum Wage (NMW) in the last two years across the United Kingdom. Over the two-year period HMRC looked at jobs across the sector and investigated 224 employers. Some investigations are ongoing, but to date 88 cases have been found to be non-compliant.
These investigations have identified nearly £340,000 in arrears for over 2,400 workers and also over £110,000 in penalties to employers for breaking the law.
Jo Swinson, Employment Relations Minister, said:
"Anyone entitled to the National Minimum Wage should receive it. Paying anything less than this is illegal and unacceptable. Government will take tough action on employers who break the law, as we can see through HMRC's investigation into the care sector. As well as financial penalties, employers who don't play by the rules can be publically named and shamed under and may even be prosecuted.
"If workers feel they aren't getting the minimum wage that they are legally entitled to, then they should contact the free and confidential Pay and Work Rights Helpline."
The results of targeted enforcement carried out by HMRC found that the main reasons offered by care sector employers for not paying the minimum wage included: making illegal deductions such as uniform costs; not paying for time spent training or travelling between care jobs; charges for living accommodation; incorrect hourly pay rates; and incorrect use of apprentice rates.
HMRC's work is helping to better understand the reasons why some employers break the law and what can be done to prevent this, such as helping raise awareness of how NMW rules apply to the care sector.
Part II
Richard Summersgill, Director for Local Compliance at HMRC, said:
"Concerns had been raised about abuse of the rules in the care sector and so HMRC decided to take a closer look to ensure that care workers were getting a fair deal. We checked that employers were operating the rules correctly and when we found the rules were not being followed, we acted quickly.
"Our investigations found that the reasons for not paying the legal wage varied from unpaid working time spent training or travelling between care appointments, to making deductions from workers' pay that brought their pay below the minimum wage. Most employers are honest and pay their staff the correct rate, but this sends a clear message to the care sector that paying the National Minimum Wage is the law, and we will act when we find people not following the rules."
HMRC's investigation highlighted some useful steps that employers can take to make sure they are abiding by the law. These include keeping full records of the precise hours, being aware that deductions from workers pay can result in workers receiving less than NMW rates, as well as being aware of the amount of the accommodation offset and ensuring that this is factored into workers' pay where accommodation is provided.
Anyone who believes they are not being paid the National Minimum Wage can call the Pay and Work Rights Helpline, in confidence, for advice in over 100 languages - on 0800 917 2368.
RATES ARE AS FOLLOWS:
On 1 October 2013:
the adult rate increased by 12p to £6.31 an hour;
the rate for 18-20 year olds increased by 5p to £5.03 an hour;
the rate for 16-17 year olds increased by 4p to £3.72 an hour;
the apprentice rate increased by 3p to £2.68 an hour;
the accommodation offset increased to £4.91.
Press Release HMRC
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
i knew about that care scam with travelling between appointments, i spoke to someone a while back that was doing a 9 hour day and getting paid for 4 or 5 hours on average.
i believe some restaurants deduct tips from waiting staff too.
Guest 640- Registered: 21 Apr 2007
- Posts: 7,819
Yes its a shameful practice Howard. The law is the law after all. And in these times of austerity when people cant afford their energy bills and in some cases food bills, it should particularly be enforced, Never thought I would say this but
..well done the 'Revenue Men'
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
I wonder how many people will lose their jobs as a result of this.
The idiotic minimum wage is keeping people in low wages and should be done away with.
Guest 716- Registered: 9 Jun 2011
- Posts: 4,010
Totally agree Boss...........they also need more powers to catch the clients of finance johnnies....
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Catch the clients about what then Reg?
You are getting sadder all the time.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
utter tosh barry, no-one should have to work for 2 or 3 quid an hour.
the minimum wage gives a level playng field for employers, we are not talking about competing with the third world here.
have you considered why your party has not won an election for over 20 years?
get real like dave's advisers have, your party is seen as the party for the rich alone.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Howard you really have fallen into the rigid lefty thinking that time after time damages the vulnerable and low paid.
Your ridiculous minimum wage has created a low-pay norm in many industries. Every employer knows what they others are paying certain classes of job. Every employee in those job classes know that every employer is paying the same. That eliminates wage competition for employers, while it damages aspiration and expectation in the employed. The result, people being locked into that minimum wage. No longer does an employer even have to think about what wage to offer in so many industries to get staff.
Low pay is now a trap when previously it was a stage you went through towards better pay and you knew that if you worked hard, was reliable, you could raise your value in the jobs market. Those days are gone now for many people..
I am only glad that when I was low paid back in the late 70's it was before this minimum wage farce and I could work the jobs market to improve my pay. Once I managed a 40% pay rise by applying for a job elsewhere and getting offered 25%, then my existing employer countered that with a 40% increase - that could not happen with the min wage with employers knowing what you are paid. Those were the days!!!
This low-pay trap was created because we had a government that did not understand or believe in the markets. Better to trust the market than to trust bureaucrats and politicians.
Guest 715- Registered: 9 Jun 2011
- Posts: 2,438
It is a minimum wage, employers can pay you above the minimum wage
Audere est facere.
Guest 649- Registered: 12 Mar 2008
- Posts: 14,118
And most do Mr Martin but it hits small companys and shops the most some will now not take on women in case they have a baby and the company have to pay them a years wage, it is alright making the laws but in the real world they do not work.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
balderdash and piffle barry, everyone knows that in the retail sector good companies pay that bit extra to attract the best staff.
reducing the issue to 1970's terms like lefty shows the paucity of your argument, ask a security guard that was paid £1 50 an hour before the minimum wage of around 4 quid was brought in what he/she thinks.
Keith Sansum1
- Location: london
- Registered: 25 Aug 2010
- Posts: 23,888
Usual tosh from barryw trying to justify the poor wages of some
your right howard in your last 2 posts
ALL POSTS ARE MY OWN PERSONAL VIEWS
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
nobody can live reasonably in those circumstances keith.
Keith Sansum1- Location: london
- Registered: 25 Aug 2010
- Posts: 23,888
quite agree howard
ALL POSTS ARE MY OWN PERSONAL VIEWS
Jan Higgins
- Location: Dover
- Registered: 5 Jul 2010
- Posts: 13,835
To twist the debate a little without the minimum wage the tax payer would be dishing out a fortune in tax credits and other benefits, maybe Barry would prefer that scenario.
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I try to be neutral and polite but it is hard and getting even more difficult at times.
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Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
and they are cutting benefits aren't they.
Guest 649- Registered: 12 Mar 2008
- Posts: 14,118
In Iidustries the minimum hourly rate is costing alot of jobsI know this because that was my kind of work +my family have over 200 working in a factory.Where the boss would take on unskilled workers to do work that did not need a skilled person to do it. That does not happen now in lots of cases they take on a ex skilled person who will also do the unskilled jobs because they can do unskilled work but a unskilled person cannot do the skilled work this cuts out paying the higher rate for the unskilled person.And a person that is unskilled is now finding it very hard to get work in a industrial factory .And this is very true not soming off the top of my head,infact it is costing 100s of jobs.The minimum wage just does not work that is why we are seeing alot more part-time work as well.+As I have already said in a post woman are not been taken on in most cases more then part-time because a boss does not have funds to pay them a year off work if they have a baby, men are now doing work a woman could easy do just because the boss knows by doing that will save his company money because men do not have babys.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Martin P wrote:It is a minimum wage, employers can pay you above the minimum wage
But why bother when everyone is paying the min wage for a particular job? Be realistic, businesses are not charities and never should be run as such.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
howard mcsweeney1 wrote:balderdash and piffle barry, everyone knows that in the retail sector good companies pay that bit extra to attract the best staff.
reducing the issue to 1970's terms like lefty shows the paucity of your argument, ask a security guard that was paid £1 50 an hour before the minimum wage of around 4 quid was brought in what he/she thinks.
In some sectors it does not apply but in others the minimum wage is the norm. You again fail to look at consequences. Well resourced businesses may well do that in retail but many retain business are marginal at best with most being under-capitalised.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Jan Higgins wrote:To twist the debate a little without the minimum wage the tax payer would be dishing out a fortune in tax credits and other benefits, maybe Barry would prefer that scenario.
No Jan - I would phase out tax credits as well. These also keep wages down. Better to cut out the costly and inefficient tax credit system and reduce taxation instead. I would lift the nil rate band of income tax the equal the equivalent of the minimum wage at 40 hours per week.