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National Minimum Wage and Employment Agency Standards enforcement consultation

Starting Date: 16-05-07

Closing Date: 08-08-07

Since 1997, our approach to the UK labour market has been based on combining social justice with economic prosperity so that businesses grow and employment expands, delivering opportunity for all. Last year’s Success at Work strategy paper set out the next stage of our approach. In particular, it emphasised the need for a stable and proportionate regulatory framework: one in which complying with the law is simple and straightforward and where individuals get the rights to which they are entitled, supported by an effective enforcement and penalties regime.

This consultation is about two key elements of the regulatory framework – the national minimum wage (NMW) and the Employment Agency Standards Inspectorate – focussing on measures to promote compliance and improve fairness both for workers and compliant businesses.

We are proposing a new strategy to deal with cases of underpayment of the NMW, based on a fairer way of dealing with arrears, and a simpler, more effective penalty regime to deter non compliance.

We are also consulting on strengthening the penalties regime for offences committed against employment agency legislation and clearer investigative powers for the Employment Agency Standards Inspectorate. By making it more difficult for the small minority of rogue agencies to cut corners at the expense of the reputable side of the industry, these changes should benefit both workers and most agencies.

Questions about the issues raised in this document related to National Minimum Wage can be addressed to:

Helen Dwyer
Department of Trade and Industry
Tel: 0207 215 3484
Fax: 0207 215 6414
Email: helen.dwyer@dti.gsi.gov.uk

Questions about the issues raised in this document related to Employment Agencies enforcement regime can be addressed to:

John Thorpe
Department of Trade and Industry
Tel: 0207 215 5708
Fax: 0207 215 6414
Email:john.thorpe@dti.gsi.gov.uk

Consultation Documents

• National minimum wage and employment agency standards enforcement: consultation document (336KB)