| Topic: £5000 Fine for Paying Less Than Minimum Wage! from 6th Apr09 |
| Posted : 06/07/09 / Views : 8932 / Replies : 177 | |
|  | As from 6 April, there is a new penalty for employers who pay workers below the national minimum wage and a new method of working out arrears owing to those employees.
Employers who do not pay the minimum wage could be faced with an automatic fine of up to £5,000, while serious offenders could receive an unlimited fine.
HM Revenue and Customs compliance officers get extra powers to carry out their investigations into breaches of the law on the national minimum wage.
The new method of calculating arrears means that employers have to pay any past wages owing to underpaid workers at the current minimum wage rates, not the rates when the workers were underpaid, if these are higher.
Any employer who underpays after 6 April 2009 will also be subject to a fine of 50 per cent of the total amount underpaid; the fine has a minimum level of £100 and a maximum of £5,000.
So the the Act also gives HMRC compliance officer's new inspection powers and strengthens the criminal regime for national minimum wage offences. Further details here.
**;¬)) | 
Editorial comment Thread now closed as getting too long in length - feel free to continue the discussion by starting a new thread. |
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| Reply #1: Re: £5000 Fine for Paying Less Than Minimum Wage! from 6th Apr09 | Posted : 22/04/09 |
|  | Thanks so much for alerting us to this!I've had a look at the info attached.I lost a small role in a TV independent film because I asked for the minimum wage, instead of just expenses.I was very polite and said I'd love to do it, but paid at least this, as they are a commercial company.
Um..lots of paid jobs suddenly today for the ladies...I wonder. |
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| Reply #2: Re: £5000 Fine for Paying Less Than Minimum Wage! from 6th Apr09 | Posted : 22/04/09 |
|  | | Thanks Clive for this. Certainly grist to the mill when arguing the minimum wage corner :-)) |
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| Reply #3: Re: £5000 Fine for Paying Less Than Minimum Wage! from 6th Apr09 | Posted : 22/04/09 |
|  | Yay! Bring it on! ;-)
Thank you for this info - very interesting!
Nadia |
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| Reply #4: Re: £5000 Fine for Paying Less Than Minimum Wage! from 6th Apr09 | Posted : 22/04/09 |
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| Reply #5: Re: £5000 Fine for Paying Less Than Minimum Wage! from 6th Apr09 | Posted : 23/04/09 |
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| Reply #6: Re: £5000 Fine for Paying Less Than Minimum Wage! from 6th Apr09 | Posted : 23/04/09 |
|  | Hi Clive,
The Government have really taken a big step to start properly enforcing the minimum wage. Enforcement should have been tighter right from the day it was first introduced.
I am however still a little concerned that those of us working in the entertainment field remain slightly at risk, as a lot of the work we undertake is on a self-employed basis. Only contracted employees of a company (whether temporary, seasonal, full or part time) are protected by minimum wage entitlement.
I've had no problem with reputable employers offering Equity minimum rates, but was left with no choice but to refuse work earlier this year when offered a "fixed fee" for a job, where the amount stated in the contract would remain the same regardless of the amount of hours put in. It was evident even from the initial schedule that the amount of filming expected would effectively have meant working for less than £3 per hour, and that's before accounting for expenses, which of course I would have to have met myself. Whilst I was really pleased to be offered the work after a tough audition process, I wasn't desperate to be exploited and be left with the prospect of working at a possible loss, so turned the job down.
Legislation like this does however at least set a precedent for negotiating better terms of contract when working self-employed - we simply have to be confident about what we would be entitled to if we were working as a regular employee, and bring our expectations to the table - we are not second class citizens, after all.
I'd also just like to point out that the complaint links above will only be of help if you have worked as a contracted employee, not when you have worked on a self-employed basis, just in case anyone decides to file a complaint.
I personally don't have a solution to the problem, but lets hope it is at least debated next time they consider legislative changes. Right now, anyone working on a self-employed basis is left in a moral dilemma when it comes to low-paid work, and essentially has to make the choice to either take it or leave it. I'm fortunate that I have a second income at present and can afford to say no to being exploited.
Kris |
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| Reply #7: Re: £5000 Fine for Paying Less Than Minimum Wage! from 6th Apr09 | Posted : 23/04/09 |
|  | Hi Kris,
Although you are classed as self-employed for tax reasons, actors in the main, are deemed to be 'workers' (not employees) who pay Class 1 National Insurance contributions.
'Workers' have the same rights as 'employees' when it comes to statutory right to holiday pay and statutory right to the National Minimum Wage etc. They can also take a delinquent employer to a tribunal too, under certain circumstances.
If you work in variety such as - say a comedian or conjurer, you are deemed to be truly self-employed and you are not classed as a 'worker'. You do not have 'workers' rights...
You should read up on your rights as an actor/worker!
**;¬)) |
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| Reply #8: Re: £5000 Fine for Paying Less Than Minimum Wage! from 6th Apr09 | Posted : 23/04/09 |
|  | | Clive, I'd just like to say I think this is fantastic and so are you for all your continual work. |
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| Reply #9: Re: £5000 Fine for Paying Less Than Minimum Wage! from 6th Apr09 | Posted : 23/04/09 |
|  | Hi Clive,
That's really reassuring, thank you for responding. =)
Kris |
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| Reply #10: Re: £5000 Fine for Paying Less Than Minimum Wage! from 6th Apr09 | Posted : 23/04/09 |
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