Employers underpaying their staff face unlimited fines as part of a crackdown on those exploiting workers under the government’s Employment Act which comes into action in April 2009.
The Employment Act aims to introduce a fairer way of dealing with national minimum wage payments so workers do not lose out.
Along with the legislation business secretary Peter Mandelson has launched the It’s Your Call campaign to raise awareness of the increase in the national minimum wage and help workers complain if they are underpaid.
Lord Mandelson talked about the need to make sure workers are treated fairly, saying: “Of course, most businesses treat staff fairly, but the small number who cheat their workers are flouting the law and undercutting honest competitors.
“Our changes will make sure everyone caught not paying their workers properly faces a stiff penalty - we are determined to ensure workers are paid fairly.”
More than one million people across the UK benefit from annual rises in the national minimum wage.
On October 1st, rates rose to £5.73 for workers aged 22 and over; £4.77 for 18-21 year olds and £3.53 for those aged 16 and 17.
The It’s Your Call roadshow, launched in Downing Street this morning, will visit over 28 towns and cities in a three-month tour of the UK.


12 Comments
I think most people are more worried if they are going to have a job than the minimum wage. All very well Mandy looking after those in work, whats he doing to keep people employed? Surely bullying employers isn’t the answer?
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I am totally opposed to the uncontrolled mass movement of people into this country and I have many reasons for having this view, however, I also have the view that however they have arrived here, legally, illegally or whatever, they are entitled to be treated fairly and humanely if/when they take up work. Far to many employers are still exploiting people coming to this country by paying wages far below the minimum and, in addition, making unauthorised deductions from already “pittance” wages. The fruit and vegetable growing areas of this country, and I have some experience of one not far from here would not stand a concerted and widespread scrutiny. The book should be thrown at those employers exploiting cheap labour, I have no sympathy with them at all. Stop them coming here, yes, by all means but once they are here they must be treated correctly, it demeans us all when they are not.
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Stuart: If Johnny Foreigner finds himself here by unfair means, then he cant expect to be treated fairly. What is good for the goose is good for the gander!
However I met some Eastern European fruit pickers a few years ago and they explianed that they were here on an “Agricultural Training Scheme” and hence got around the minimum wage and were paid £2 per hour while “studying”. I have always wondered if they were correct or had been duped themselves?
Anyway, these young girls were out in the fields all weather and were hoping to stay on until November so they could buy an apartment outright back home!
It is the hardship of other parts of Europe and the world that make the UK the No1 destination for economic migrants. I’m happy with cheap food and they are happy providing it - everyone is happy except the do-gooders. Let sleeping dogs lie!
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“Stuart: If Johnny Foreigner finds himself here by unfair means, then he cant expect to be treated fairly. What is good for the goose is good for the gander!”.
Are you saying that he/she shouldn’t be treated legally - because being treated legally also means being treated fairly. If you don’t advocate fair treatment then you are, by implication advocating illegal treatment and there is to much of that.
I would like to think that you don’t really mean half what you say but I am starting to have doubts - and I am certainly no “do-gooder”, but I can’t accept some of your more forthright views.
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Stuart: I dont see you quantum leap to me advocating unfair treatment.
If I was to apply your logic to your postition it would be claiming that Illegal workers in the UK are entiled to Minimum Wage and free NHS treatment for them and their dependants! Surely thats not what you are saying?
I really dont know how to express my views more clearly on Illegal workers in the UK. But it sounds like you accept once they work illegally they should enjoy all the rights legal workers. This is tantamount to saying that criminals should enjoy the freedoms of the law abiding.
Just where is all this liberal lunacy coming from!!
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Stuart have you ACTUALLY ever employed anybody?
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I don’t know about lunacy Lucy (that’s got a nice ring to it!) but you certainly seem to be a little confused on this issue.
In your first post you’re concerned about people having a job, but then you say “I’m happy with cheap food and they are happy providing it - everyone is happy except the do-gooders. Let sleeping dogs lie!”.
So everyone’s happy? What about the people whose wages are undercut by illegal workers? What about the workers on minimum wage who have to claim benefits to survive (paid for by those on slightly higher incomes - the rich have a tendency not to pay tax)?
And before you ask, Eric, I AM an employer.
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well done peter mandelson, first he saves 3000 post offices by keeping the post office card account with post office. now he is looking after workers rights. he has hit the floor of the house of lords running. another example of gentle socialism at work. keep it up peter
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Far be it from me typically to spring to Stuart’s defence, but he is absolutely right. We have laws on paying people a fair wage - the minimum wage doesn’t exactly represent a vast fortune, does it?
Any employer seeking to undermine this, either directly, by underpaying, or indirectly by bogus ‘deductions’ or changes to holiday entitlement, is not employing, but exploiting people, and deserves to be punished.
For ‘legal’ workers who are being bullied in this way, the rest of the taxpaying public, and legitimate employers end up paying to help them, and exploitative employers benefit not only from this effective subsidy, but also from the fact that they are competing on unfair terms with legitimate employers.
Mandelson’s appointment was an interesting one. Although he seems to be a difficult person to like or admire, he was well-regarded by the CBI as a trade secretary when he held the post before.
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Lucy, re yours at 5, the first para, YES, that’s exactly what I am saying. If the Government doesn’t like paying these sums out, don’t let them in and, if they are in, treat them legally and fairly until they are speedily got out.
What would you suggest we do with a seriously ill man/woman knowing that he / she has no money, kick them out onto the hospital car park.
2nd para, NO, that is not what I am saying at all, given the strict requirement for fair and legal treatment, commonsense then takes over and they should be dealt with on that basis - with humanity.
I am not a liberal, big L or little l, never have been, never will be. I have always been humane and fair, always have been always will be.
As for askeric dotcom, NO I have never employed anybody, should I be ashamed of that or is the requirement to be an employer a necessary pre-requisite to have an opinion on fairness and legality. Your comment is couched in terms which imply that employers that exploit illegals should not have the book thrown at them but you don’t mean that do you.
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Rob … I never actually asked “you” if you were an employer ! - I asked Stuart.
I also did not indicate why I was asking the question! -
So when you say “and before you ask, Eric” rather implies that you are assuming I’m taking an opposing view - and so I’m being discouraged from “asking you” the question, …. which, I haven’t….. and i’m not !
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askeric dotcom said:
“Rob … I never actually asked “you” if you were an employer ! - I asked Stuart.
I also did not indicate why I was asking the question! - ”
So I was curious why you asked Stuart - and still am.
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