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<p>The Government takes the enforcement of National Minimum Wage (NMW) very seriously
and HMRC enforce the national minimum wage legislation on behalf of the Department
for Business, Innovation and Skills and has done so since the introduction of NMW
in April 1999. It does that by investigating all complaints made about employers suspected
of not paying the minimum wage, in addition carrying out targeted enforcement where
it identifies a high risk of non-payment of NMW across the whole of the UK.</p><p>
</p><p>HM Revenue and Customs (HMRC) have a legal duty of confidentiality towards
their customers. For NMW, this includes employers and their workers. This means that
HMRC cannot supply all the information requested as this would breach HMRC's statutory
duty of confidentiality under s18(1) of the Commissioners for Revenue and Customs
Act 2005.</p><p> </p><p>Fines are associated with criminal offences. Where minimum
wage arrears are identified for any pay reference periods starting on or after 6 April
2009, the employer will be charged an automatic penalty. The rate of the penalty charge
was 50% of the arrears falling in pay periods after 6 April 2009 (minimum penalty
charge was £100 and the maximum was £5,000).</p><p> </p><p>The Government has increased
the financial penalty percentage from 50 per cent to 100 per cent of the unpaid wages
owed to workers, and the maximum penalty from £5,000 to £20,000. These new limits
are now in force where arrears are identified in pay reference periods on or after
7 March 2014. The Government will also bring in primary legislation as soon as possible
so that the maximum £20,000 penalty can apply to each underpaid worker.</p><p> </p><p>To
ensure that underpaid workers receive the arrears of national minimum wage due to
them, HMRC contacts every employer for confirmation that they have paid the arrears
to workers. In cases where 5 or fewer workers are owed arrears HMRC also contacts
all those workers for confirmation of payment. In cases where more than 5 workers
are identified as being owed arrears HMRC contacts an additional sample of workers
for confirmation of payment.</p><p> </p><p>HMRC records information by Standard Industry
Codes. The table below shows the number of employers in the Social Care sector found
to be non-compliant with NMW legislation in the last year. Also shown are the value
of arrears, the number of underpaid workers identified and the value of penalties
issued to employers as a result of those investigations.</p><p> </p><p> </p><table><tbody><tr><td><p>Financial
Year</p></td><td><p>Number of employers recorded as Social Care Sector and found to
be non-compliant</p></td><td><p>Arrears identified during those investigations</p></td><td><p>Underpaid
workers identified during those investigations</p></td><td><p>Penalties issued during
those investigations</p></td></tr><tr><td><p>2013-14</p></td><td><p>30</p></td><td><p>£800,883</p></td><td><p>3,620</p></td><td><p>£46,020</p></td></tr></tbody></table><p>
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