February 11, 2011
An alarming number of employment agencies throughout the UK are in breach of current employment legislation, research has found.
This is according to a study of Exeter employment agencies earlier this year, in which National Minimum Wage (NMW) and Employment Agency Standards (EAS) enforcement officers found widespread breaches of employment laws.
As part of the scheme, officers from HM Revenue amp; Customs (HMRC) and the Department for Business, Innovation and Skills (BIS) also made enquires to ensure that workers are being paid at or above the NMW.
A total of 102 breaches of Employment Agency legislation were identified by EAS officers and Michelle Wyer, Assistant Director of National Minimum Wage for HMRC, has since reinforced the importance of meeting minimum wage standards.
“Paying the National Minimum Wage isn’t optional, it is a worker’s legal right,” she said. “It is simply not acceptable for an employer or employment agency to operate outside of the law. We will help employers to understand their responsibilities, but will also relentlessly pursue those who deliberately break the law.”
Where a business is responsible for paying workers directly, checks were made to ensure workers are paid for all hours worked. Where a business has contracted the payroll service out to a third party, such as an ‘umbrella’ or payroll company, checks were made to ensure that workers had received proper notification of their pay.
