A London cleaning company is among a list of employers 'named and shamed' by the government for failing to pay the minimum wage.
We are Mop! Ltd, a cleaning company based in the capital, neglected to pay £1,018.05 to two workers. They are among 25 companies publicly called out as part of a new crackdown on under paying employers.
The Government also plans to increase fines, so that an employer underpaying 10 workers could face penalties of up to £200,000.
The Centre for London think-tank and Trust for London charity said the capital's economy could support a rate of £6.75 an hour for working adults; 7% higher than the statutory figure of £6.31.
The higher rate would increase the pay of around 175,000 workers by up to £800 a year, said the report.."
The national minimum wage, set by The Low PayCommission, does not take into consideration regional variations in theeconomy. The report argues that whereas low-paid workers in the rest of thecountry have benefitted from its introduction, those in London have not to thesame extent.
The report suggests that the very differentnature of the capital's economy means London employers could afford to pay ahigher minimum wage than they currently do, without causing job losses.
Tony Arbour, London Assembly Member and GLA Conservatives spokesman on economic development is today calling for a minimum wage holiday for London’s small and micro-businesses involving an exemption of up to six months.
The national minimum wage will be increased by 1.8% in October 2013.
This is 50 per cent higher than average wage growth and the decision has been criticised by many business groups.
Tony Arbour said,
“A time of high unemployment is not the right time to be pricing out those at the margins of the labour market.
I think it is important to now consider the idea of a minimum wage holiday for micro businesses and start up companies who employ fewer than 10 members of staff. This will encourage these small enterprises to take on new workers.”
The adult rate of the minimum wage is to rise by 11p to £6.19 an hour from October, Business Secretary Vince Cable announced today.
But the rates for younger workers will be frozen at £4.98 for 18 to 20-year-olds and £3.68 for 16 to 17-year-olds. Apprentices will enjoy a 5p increase in their minimum wage to £2.65 an hour.