Government Cracks Down on Employers’ Noncompliance
- Retail sector had the second highest number of underpaid staff
- HMRC achieved record enforcement results with £15.6m underpayments identified
- Over 51,300 retail jobs were affected
- Hospitality sector had the most underpaid staff at 54,000 jobs
- Record penalties issued to employers in 2017/18 with £14m fines
- 600+ employers named for underpaying workers
- HMRC pilot scheme encouraged employers to come forward voluntarily
- Funding for minimum wage enforcement increased to £26.3m in 2018/19 from £20m in 2016/17
A report by HMRC revealed that the retail sector had the second highest number of underpaid staff, with over 51,300 jobs affected. The hospitality sector topped the list with 54,000 underpaid jobs in April 2017. This year saw record enforcement results, identifying £15.6m in underpayments and issuing £14m in fines to employers. Over 600 businesses were named for underpaying workers, a record high since the scheme began in 2014. HMRC’s pilot scheme encouraged voluntary declarations, leading to nearly £250,000 in arrears for almost 700 workers. Funding for minimum wage enforcement has reached a record £26.3m in 2018/19 from £20m in 2016/17.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about the number of underpaid workers in the retail and hospitality sectors, HMRC’s enforcement efforts, and the increase in funding for minimum wage enforcement. It also includes quotes from relevant sources to support its claims.
Noise Level: 4
Noise Justification: The article provides relevant information about underpaid workers in the retail and hospitality sectors, as well as the government’s efforts to address this issue. It also mentions record enforcement results and increased funding for minimum wage enforcement. However, it lacks a deeper analysis of the causes or consequences of underpayment and does not offer significant actionable insights beyond emphasizing the importance of awareness.
Financial Relevance: Yes
Financial Markets Impacted: The report impacts the retail and hospitality sectors, as well as employers who underpay their staff.
Financial Rating Justification: The article discusses the findings of a government investigation into underpaid workers in the retail and hospitality sectors, which can impact companies’ financial performance and potentially affect their stock prices or reputation. Additionally, it mentions fines issued to employers for non-compliance with minimum wage laws.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The focus is on underpayment of minimum wage in certain sectors, which is a significant issue but not an extreme event.
www.retailsector.co.uk