Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

I move amendment No. 18:

In page 33, line 11, to delete “€2,000” and substitute the following:“€4,000, save and except in the case of failing to pay the National Minimum Wage under section 23 of the National Minimum Wage Act 2000 a sum

not exceeding €20,000 per employee”.

The maximum penalty should be at least €4,000. Revenue applies a figure of €4,000 in similar situations. This should help to deal with vexatious employers who seek to delay compliance. In Britain we have seen new legislation similar to this, which allows for a fine of £20,000 to deal with non-payment of the national minimum wage. We acknowledge the constitutional argument, but the bottom line is that lack of compliance with the National Minimum Wage Act undermines good business.

Low pay results in poverty and a transfer of wealth to those who have from those who have not. The proposed maximum fine of €2,000 is not an adequate deterrent and if we do not have an adequate deterrent then behaviour will not change. In many cases it will be worth the employer's while and he will save money by not complying and, even if he gets a fine, he is still quids-in. If the Government intends to stick to the constitutional argument for maintaining a low penalty payment, the Minister should consider increasing the fines administered by the courts instead.

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