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05-Aug-08 11:30 [Pay and Reward]
Firms avoiding minimum wage payments not prosecuted It has emerged that 774 Welsh businesses have been found to be paying under the rate of national minimum wage (NMW) since 2002-03, with workers receiving underpayments of £797,804 in that period.
Wales Online reported the news which was found by assembly member Leanne Wood of Plaid Cymru, who used the Freedom of Information Act to find the information, complained that not one of the businesses was prosecuted for undermining the law.
Ms Wood said that although the British government was quick to oppose benefit fraudsters, it was "reluctant" to dedicate time and effort to ensuring that people received the wage they legally deserved.
She added: "Businesses not paying the minimum wage should be forced to pay – not just in terms of repaying money to workers but also with sizeable financial penalties that would act as a deterrent."
Last month, Yorkshire saw its first prosecution of an underpaying employer when a butcher's shop in Sheffield was fined more than £11,000 after two former employees were underpaid.
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