Employment Bill [Lords]

We have had representations on the subject, including from my hon. Friend the Member for Paisley and Renfrewshire, North (Jim Sheridan), who has been very active on that matter. To clarify, everybody in an industry where tipping is common is entitled to the minimum wage, but when tips and gratuities are processed through the payroll of the employer it can, at the moment, count towards the minimum wage. That issue has been raised and my right hon. Friend the Secretary of State has said that he is looking into it. Clause 10 ensures that officers enforcing the minimum wage can take records relating to it in order to make copies of them. Clauses 11 and 12 enhance the way in which we can deal with the most serious offenders by increasing criminal investigative powers and enabling offences to be tried in a Crown court with the prospect of an unlimited fine. The Low Pay Commission said in its report last year:"““We welcome this determination to tackle recalcitrant employers, especially as evidence presented to us during our consultations over the last few years has highlighted the ongoing problem of non-compliance.””" Those changes will ensure that everyone who is caught not paying will pay a penalty, with a potentially unlimited fine for the most serious cases. They send a strong message that paying the minimum wage is not an option but a requirement that must be taken seriously. Coupled with an increase in the enforcement budget of £11.6 million over four years, the measures underline the Government's commitment to securing the fairest outcome for all. As I said, good employers have nothing to fear from the changes. In fact, it is in their interests that there should be a tough enforcement regime that stops illegal underpayment of the minimum wage.