Unions demand stricter punishments for businesses who dodge minimum wage laws

Trade union bosses have said that companies who try to find ways around minimum wage laws should face tougher punishments.

A new report by the Trade Union Congress (TUC) has revealed that some unscrupulous firms are charging for uniforms and exploiting interns in an attempt to avoid legislation.

Other scams uncovered by the study included under-recording worker hours, clocking off staff without any customers or refusing to pay for travel between sites.

Apprentices, migrant workers and agency staff are among those most likely to be paid less than they should.

The TUC said the study showed that in spite of greater enforcement, companies were still trying to find new ways to dodge their minimum wage obligations.

To try and put a stop to the latest lot of scams, the organisation is calling for additional enforcement officers to be hired and the maximum fine for non-compliance to be increased to £75,000.

Union leaders also think that more firms who flout the law should be named and shamed, believing that bad publicity would be a powerful deterrent for businesses.

Frances O’Grady, the TUC’s General Secretary, said there should be “no hiding place for cheapskate bosses.”

“We must engage in a constant battle to ensure that every worker gets at least the minimum. There should be a broad consensus between political parties, good employers and trade unions that the minimum wage must always be enforced effectively.”

The report comes at a time of fierce debate among the Low Pay Commission, who appear divided over whether there should be a 50p-an-hour rise in the statutory minimum wage. The new rate will be agreed in the coming months and come into force from October.