Written answers

Tuesday, 19 February 2008

Department of Enterprise, Trade and Employment

National Minimum Wage

9:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 373: To ask the Minister for Enterprise, Trade and Employment if employers who have been found to have failed to pay the minimum wage to their employees can be fined; the maximum fine that can be levied; and if he will make a statement on the matter. [6198/08]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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The National Minimum Wage Act, 2000 provides that a person found guilty of an offence under the Act shall be liable on summary conviction to a fine not exceeding €1,904.61 or, at the discretion of the court, to imprisonment for a term not exceeding 6 months, or to both. A person convicted on indictment shall be liable to a fine not exceeding €12,697.38 or, at the discretion of the court, to imprisonment for a term not exceeding 3 years, or both.

In circumstances where the offence of which the person was convicted is continued after conviction, the person shall be guilty of a further offence on every day on which the act or omission constituting the offence continues, and for each such further offences, the person shall be liable on summary conviction to a fine not exceeding €253.95 or on conviction on indictment to a fine not exceeding €1,269.74.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 374: To ask the Minister for Enterprise, Trade and Employment the number of employers that have been found to have failed to pay the minimum wage to their employees; the number of employees who have been affected; the number of prosecutions taken; and if he will make a statement on the matter. [6199/08]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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In 2007 the National Employment Rights Authority carried out 1,942 inspections/visits in relation to the National Minimum Wage Act, 2000. The majority of the inspections/visits undertaken were part of a focused employment rights compliance inspection campaign in sectors covered by the National Minimum Wage.

In 192 cases, breaches were detected for offences such as failure to pay the appropriate rate/ training rate under the Act, failure to keep records to show compliance with the Act, failure to keep records for 3 years as required by the Act. No prosecutions have been initiated to date in respect of these breaches. Arrears of €124,475 have been recovered to date. Details are not available in relation to number of employees covered by these arrears.

The primary role of the National Employment Rights Authority in the case of breaches of employment rights legislation, is to seek compliance and rectification of any breaches identified, including redress for the employees concerned and payment of any arrears due to those employees.

It should be noted that in the majority of cases employers rectify breaches of employment law and pay any arrears due to employees without prosecution. However, the National Employment Rights Authority reserves the right to initiate prosecutions in respect of breaches of certain employment legislation.

Targeted campaigns, accompanied by awareness and promotional activities, will be a significant feature of National Employment Rights Authority's future employment rights compliance and information strategy.

The Deputy should be aware that Rights Commissioners of the Labour Relations Commission also hear complaints concerning breaches of the National Minimum Wage Act 2000.

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