Government respond to the Director of Labour Market Enforcement

15 October 2020

Before his retirement in July 2019, Director of Labour Market Enforcement, Sir David Metcalf published his 2019/20 Strategy in which he made 44 recommendations.

The report reveals that the government will be accepting 35 of those, partially accepting eight and rejecting outright one which was recommended that the NMW penalty multiplier be the subject of independent evaluation.

In rejecting this recommendation the report confirms:

‘The Government accepts the importance of understanding the effect of the current NMW penalty multiplier. As HMRC enforces breaches that are up to 6 years old, it will take around 6 years from the date that the new rate was set in 2016 for its full effect to take hold. We will evaluate the effect of the multiplier once the full cycle of cases have taken place under the current level and so the Government rejects the recommendation to undertake an evaluation at this time. BEIS work with HMRC to continuously monitor the impact of the enforcement regime, including penalties, and will continue to do so’

The Government response to the UK Labour Market Enforcement Strategy 2019/2020 can be read in full at gov.uk.  


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