HC Deb 23 March 1989 vol 149 c801W
Mr. Madden

To ask the Secretary of State for Employment what action he is taking to investigate allegations made by the BBC "Watchdog" programme that named employers were paying illegally low rates of pay to employees and falsifying accounts; and if he will make a statement.

Mr. Nicholls

The wages inspectorate is examining the allegations made in the programme.

The inspectorate treats all of its inquiries and investigations as confidential and the results are disclosed only to those directly involved.

Mr. Redmond

To ask the Secretary of State for Employment if he will make a statement on the characteristics of the two cases of underpayment in the Yorkshire and Humberside area which were prosecuted, and on the action taken over the 629 cases of underpayment not prosecuted.

Mr. Nicholls

The cases met the wages inspectorate's criteria for prosecution action. The policy of the inspectorate under all Governments has been to seek compliance by advice and persuasion and to consider prosecution only where an offence is deliberate or repeated and where the evidence is considered adequate to prove a charge in court.

In the great majority of cases where underpayments are found, the employers are being inspected for the first time and many of them are unaware of the regulations. In these and other circumstances where underpayment occurs, the employer is notified of his obligations and asked to give an undertaking to pay not less than the statutory minimum rate in the future. Where the inspectorate has reason to believe that the underpayment may continue, the establishment is identified for re-inspection.