DTI plans to enforce minimum wage policy

by Ewan Turney

Pubs are likely to face a concerted crackdown on national minimum wage offenders.

For the first time, specific employment sectors will be put under the spotlight for a targeted enforcement of the minimum wage, led by the Department of Trade and Industry (DTI).

The new approach will focus initially on the hairdressing sector in a pilot that, if successful, will lead to other low-paid sectors being targeted in the future.

The DTI and HM Customs & Revenue have already recovered £20m from employers not paying the minimum wage since its introduction in April 1999.

Pubs could well be next on the list for enforcement action after a recent GMB union survey ranked bar staff 338 out of 342 in the worst-paid list, earning an average of just £11,094 a year. Hairdressers finished three places above them in 335th place.

'While the vast majority of employers are happy to pay the minimum wage, we believe that a small number are continuing to pay too little, said employment secretary Gerry Sutcliffe.

'This new approach will direct resources to where they are needed most. We will not tolerate non-payment of the national minimum wage.

Federation of Licensed Victuallers' Associations chief executive Tony Payne said that dodging the minimum wage was not a common problem in the industry but warned rogue licensees to change their ways. 'It is only fair you pay staff the going rate, he said.

Payne also urged licensees to pay all staff the adult rate regardless of age. 'If you want to build a good relationship within the team, it is only fair you pay an 18-year-old doing the same work as a 44-year-old the same rate, he said.

The minimum wage is set to rise to £5.05 an hour in October 2005 from £4.85 and from £4.10 to £4.25 for 18 to 21-year- olds.