6 January 2017

The government has announced the appointment of Sir David Metcalf as the first Director of Labour Market Enforcement. The new role signals the government’s intention to co-ordinate employment enforcement bodies, including the HMRC National Minimum Wage enforcement team, to stamp out exploitation. Three government agencies will centralise their intelligence to target sectors and regions to identify rogue employers ‘who exploit their workers and undercut honest businesses’.

The government agencies will also work closely with the Anti-Slavery Commissioner to identify victims of ‘modern slavery’ and those who are working in the UK illegally. A recent raid on nail bars employing illegal foreign workers in nail bars resulted in 100 arrests and 68 businesses were warned that they face fines of up to £20,000 for every illegal worker.

The news on David Metcalf’s appointment comes ahead of the launch of a £1.7 million national minimum and living wage awareness-raising campaign later this month. It will help make sure the UK’s lowest paid workers receive the correct rates of pay when they increase on 1 April 2017 and know what steps to take if they do not. Specific industries will be targeted, including hair salons, beauty salons and barbershops.

NHBF CEO Hilary Hall commented

"We are pleased to hear of this new appointment and greater co-operation between different agencies.  We want to see tougher action on rogue employers who deliberately break the law.  As well as exploiting their workers, rogue employers also gain an unfair competitive advantage over the law-abiding salons who try to do the right thing, and who genuinely care about the welfare of their employees. However, it will be even more important for employers in our sector to pay the right rates, which will be increasing from April 2017, or risk the consequences of increasingly tough enforcement action.”