Simon Coveney (Cork South Central, Fine Gael)
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The National Minimum Wage Act, 2000 provides for the obligation to pay an employee a national minimum hourly rate of pay and applies to all individuals engaged under a contract of employment. Apart from the employment of close family relatives and the engagement of registered industrial apprentices, there is no exemption in law from the obligation to pay the national minimum hourly rate of pay.

The Workplace Relations Commission (WRC) carries out inspections of employer records with a view to determining compliance with certain employment law statutes including the National Minimum Wage Act, 2000. Inspections arise for various reasons including complaints received of alleged non-compliance and by way of compliance campaigns which focus on specific sectors or with specific employment law statutes.

The WRC’s aim is to achieve voluntary compliance through the provision of education and awareness, inspections of employment records and workplaces, and enforcement where necessary. Where evidence of breaches of the provisions of the National Minimum Wage Act, 2000 are detected by WRC inspectors, and if an employer fails, or refuses to rectify the matter, the employer may be liable to prosecution. Where an employer is found to be in in breach of the Act but subsequently complies with requirements and pays arrears of wages following intervention, that employer is likely to have a return re-inspection to ensure compliance is maintained.

Failure to pay the national minimum hourly rate of pay is a criminal offence, punishable upon summary conviction, by a fine not exceeding €2,500 or imprisonment not exceeding 6 months or both. In addition, an employee not in receipt of the national minimum hourly rate of pay may refer a complaint to a WRC Adjudication Officer who may order payment of the wages unpaid or underpaid.

Since 1/1/2019, WRC inspectors uncovered 998 contraventions under the NMW, covering 921 employers. None of the employers who were subsequently re-inspected by the WRC were found to be in breach of the Act.

To coincide with the increase in the National Minimum Wage in 2023, the WRC conducted a national information and inspection campaign throughout Q1 of 2023. The purpose of the campaign was to create awareness of the NMW increase while also conducting inspections to ensure compliance with the new rates. A similar campaign was also carried out in January of this year and is ongoing.

I am satisfied that the WRC’s approach to achieving compliance with the legislation is both effective and proportionate. There are currently no plans to increase the penalties under the legislation.