Small business wage warning from Mandelson
Commercial insurance
19th November 2008
Making sure insurance for business is in place is one way to guarantee against losses during a difficult period - but cutting staff wages may not be, the government is warning.
Business secretary Lord Mandelson is leading a campaign against small business owners that pay their staff below the minimum wage.
He launched a new road show at Downing Street, promising that the government will come down strongly on firms that do not meet the legal requirements.
Lord Mandelson said that the campaign aims to ensure that workers know what they are entitled to, adding that "more than one million workers benefited" from an increase last month.
"Of course, most businesses treat staff fairly, but the small number who cheat their workers are flouting the law and undercutting honest competitors," he continued.
Under the changes, fines for rogue employers will no longer be capped at £5,000.
The national minimum wage is set by the government, based on independent recommendations from the Low Pay Commission.
