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Wage increases to impact SMEs?
Reported on Tue, 22 Aug 2006
Small companies in the UK could be turning to secured loans to cover the cost of staff wages after new research reveals that some firms are underpaying employees.
The top reason given by employers for not meeting the minimum wage was branding employees a 'waste of space', according to HM Revenue & Customs.
Other excuses given by companies included small firms not knowing the minimum wage applied to small employers.
Dawn Primarolo, paymaster general, said: "By far the majority of employers are honest and scrupulous, so instances of non-payment are very much in the minority.
"But this list shows that there are still some rogue employers out there willing to flout the law, which is why our enforcement teams are hard at work across the UK to ensure that everyone is getting paid at least the national minimum wage.
Meanwhile recent reports from the Confederation of British Industry suggest that UK firms are suffering as a result of a shortage of skilled employees.
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