'He doesn't deserve the minimum wage'

Tuesday, 22 August 2006 12:00 AM

Employers' outlandish excuses to get out of paying workers the national minimum wage have been revealed today.

At the top of the list of reasons given to HM Revenue and Customs not to pay employees properly was that they did not deserve it - they were a "total waste of space".

Other attempts to get around the law included claims that an employee was only taken on "as a favour"; they could not speak English; they were disabled; and they only asked for £3 an hour when they applied for the job in the first place.

Paymaster general Dawn Primarolo said: "By far the majority of employers are honest and scrupulous, so instances of non-payment are very much in the minority.

"But this list shows that there are still some rogue employers out there willing to flout the law, which is why our enforcement teams are hard at work across the UK to ensure that everyone is getting paid at least the national minimum wage."

Last year the 16 teams around the UK identified nearly £3.3 million in underpaid salaries, and today shadow chancellor George Osborne warned that without proper enforcement, the minimum wage would only hurt those employers who respect the law.

"A minimum wage only works if it is properly enforced. Otherwise, law-abiding employers lose out, while unscrupulous employers receive an unfair advantage," he said.

The national minimum wage was introduced by Labour in 1999, and is currently at £5.05 an hour for workers over the age of 22, and £4.25 for those aged 18 to 21.

In October, it is set to increase to £5.35 for people over the age of 22, £4.45 for 18 to 21-year-olds and £3.30 for 16 and 17-year-olds. However, businesses have warned this would add billions to wage bills, and threaten jobs.

Last week, the British Retail Consortium (BRC) called for a "fundamental reassessment" of the minimum wage, citing preliminary findings from its annual survey that showed last year's rise cost retailers £1 billion, and this October's would cost a similar amount.

"That kind of money can't be found year after year without detriment to business," said director general Kevin Hawkins.

"With other costs, including energy prices, rent, rates and service charges now also shooting up, it's no surprise that a quarter of retailers say they are likely to cut staffing costs, which may include some jobs."

Tags:
• economy
,
• employment
,
• national minimum wage