Corby job agencies targeted in minimum wage blitz

Employment agencies in Corby are being investigated by HM Revenue and Customs (HMRC) on suspicion of significantly underpaying employees the National Minimum Wage, as part of a newly launched multi-agency taskforce to tackle migrant labour abuse

A three-day operation in the town uncovered a possible £100,000 owed to 3,000 employees in the area.  HMRC and the Department for Business Innovations and Skills (BIS) officers visited 34 employment agencies between 28 and 30 May 2013.

Michelle Wyer, Assistant Director of National Minimum Wage for HMRC, said:

“This cross-government taskforce operation has allowed us to get into the heart of the community to tackle those employers who operate outside of the law and deliberately fail to pay the National Minimum Wage.  We will not hesitate to use our full enforcement powers to ensure that workers receive the money to which they are legally entitled.

“Anyone with questions or concerns about the National Minimum Wage should call the Pay and Work Rights Helpline on 0800 917 2368.”

HMRC can issue penalties of up to £5,000 to businesses found to be paying their workers less than the National Minimum Wage. They will also be required to pay any wage arrears at today’s National Minimum Wage rates.

The crackdown on employment offenders comes as part of the government’s drive to introduce tougher action against businesses which use illegal labour. The Immigration Bill, announced in the Queen’s speech, will put added pressure on those who have no right to live in the UK to leave the country. New measures include proposals to double the fines levied against those found employing workers who have no legal right to be here to a maximum of £20,000.

Employment Relations Minister Jo Swinson said:

"I fully support the joint approach being taken by these enforcement bodies"

"The advice and guidance given by our investigators on these visits made sure that agencies are fully aware of their legal responsibilities and what they need to do to abide by the law.

"We want to make sure that the employment rights of vulnerable agency workers are protected and create a level playing field for that vast majority of agencies who play by the rules."

HMRC officers will carry out further investigations into the activities of the businesses suspected of failing to meet their tax and national insurance obligations. 

Notes for editors

1.  HMRC enforces the National Minimum Wage on behalf of the Department for Business, Innovation and Skills. Checks are made to ensure that workers are being paid at or above the National Minimum Wage for all hours worked. Businesses that contract out their payroll service to a third party, such as an “umbrella” or payroll company are also subject to these checks.

2.  Details of the current National Minimum Wage payment rates: gov.uk/national-minimum-wage-rates

3.  Agencies that break the law can face prosecution and courts can impose unlimited fines for the most serious offences. Rogue agencies can also be banned from operating for up to 10 years. A current list of prohibited people is available on the EAS website https://www.gov.uk/government/policies/making-the-labour-market-more-flexible-efficient-and-fair/supporting-pages/enforcing-standards-in-employment-agencies-and-employment-businesses-and-recruitment-agencies

4.  The cross-government taskforce operation includes HM Revenue and Customs, Department for Business Innovations and Skills, Police Forces, the Gangmaster Licensing Authority, the Department of Work and Pensions, Home Office Immigration Enforcement and local authorities.

5.  Anyone who thinks they are not being paid the National Minimum Wage or has concerns about an employment agency or business can call the Pay and Work Rights Helpline on 0800 917 2368 in confidence.

6.  Officers were looking for breaches of the Conduct of Employment Agencies and Employment Businesses Regulations 2003 (as amended) and non-compliance with the National Minimum Wage Act 1998.

7.  Anyone with information about individuals or businesses involved in tax fraud is encouraged to call the Customs Hotline on 0800 59 5000.

8.  Follow HMRC on Twitter at: @HMRCgovuk