Lord Mandelson has begun his new campaign to bring awareness of the minimum wage increase around the country as well as new penalties that have been enforced against businesses that underpay their employees.

Lord Mandelson has said that number of small businesses were “cheating” their employees by underpaying them below the minimum wage and therefore breaking the law of the land.  The road show, labelled “It’s Your Call”, will see the Business Secretary visit 28 town and cities throughout the UK over the next few months, dolling out counselling on the minimum legal entitlement for an employee and how these employees can make a complaint if they are being underpaid.

The 1st October saw an increase of the minimum wage to £3.53 for employees between 16 and 17, £4.77 for workers aged between 18 and 21 and £5.73 for workers aged 22 and over.

Employers found to be flouting the law will be fined up to a maximum of £5,000 and the road show will have facilities for allowing employees to report cases of underpayment, and fully trained staff will be available on site to provide counselling and advice.

Lord Mandelson said he was happy to witness the minimum wage making such a big difference to employees in Britain.  He said “More than one million workers benefited from its increase last month and it’s important that we make sure everyone knows what they’re entitled to - that’s what this campaign is all about.”

The road show comes after news that Lord Mandelson had proposed that ‘family-friendly’ employment laws, recently announced, should be put on hold during the current economic downturn.  The law would see children under the age of 16 being given the opportunity to ask for flexible hours at work.

However, Lord Mandelson has received criticism for wanting to put back the plans as employers feel that the reasons for the law are the same whether in an economic crisis or not.  A Sainsbury’s director, Imelda Walsh, said, “I wouldn’t change my recommendations.  The reasons for extending the right to request are the same today as they were seven months ago. The right to request is the correct approach, the protection for business to say no is robust and there is no reason to lower the age range.”

When discussing the minimum wage problem, Lord Mandelson went on to say, “Of course, most businesses treat staff fairly, but the small number who cheat their workers are flouting the law and undercutting honest competitors.

“Our changes will make sure everyone caught not paying their workers properly faces a stiff penalty - we are determined to ensure workers are paid fairly.”

Anyone concerned that they are not receiving the National Minimum Wage from their employers can reach the National Minimum Wage helpline on 0845 6000 678, or 0845 6500 207 from Northern Ireland.  Callers will receive help in over 100 languages and can remain anonymous if they desire.

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