Minimum Wage
The question
To ask the Secretary of State for Business and Trade, what assessment he has made of the potential merits of bringing forward secondary legislation to amend the Insolvency Act 1986 so as to enable employees to claim directly against company directors where an insolvent company has knowingly failed to comply with minimum wage legislation.
Answered by Blair McDougall
Employees of companies subject to insolvency proceedings are already able to claim arrears of wages, up to a statutory limit, from the National Insurance Fund through the Insolvency Service. In situations where minimum wage provisions have not been met, this can include an uplift payment.
Knowingly breaching minimum wage provisions is evidence of misconduct, and the Secretary of State may, where public interest criteria are met, seek to disqualify a culpable director. Where a director is disqualified, they may also be required to pay compensation for the benefit of creditors who have been directly harmed by their actions.
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