Government cracks down on bosses who underpay staff

Travel industry employers who pay below the minimum wage could face an unlimited fine or be prosecuted, Prime Minister Gordon Brown announced this week.

The Government has boosted funding for the enforcement of the national minimum wage and has introduced tough new penalties as part of the Employment Bill, now before Parliament.

The minimum wage for adults will rise from £5.52 to £5.73 from October. The rate for 18 to 21–year–olds will increase from £4.60 to £4.77, while the 16 to 17–year–old rate will rise from £3.40 to £3.53.

Chairman of the Low Pay Commission Paul Myners said: “Despite many predictions to the contrary, job numbers in the industries most affected by the minimum wage have risen significantly over the same period.”

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