Government Departments: Contracts
The question
To ask the Minister for the Cabinet Office, what consideration is given to disqualifying companies fined for non compliance for paying the national minimum wage when awarding Government contracts.
Answered by Chris Ward
Non compliance with paying the national minimum wage is unacceptable and has no place in government contracts or in wider society.
The Procurement Act 2023 provides contracting authorities with strong powers to exclude suppliers from public procurements where an exclusion ground applies, including where they have breached existing labour laws.
Where the circumstances that cause an exclusion ground to apply are continuing or likely to reoccur, contracting authorities must exclude suppliers subject to mandatory exclusion grounds.
Such grounds could include where a supplier is convicted of the offences of refusing or wilfully neglecting to pay the national minimum wage, or of failing to comply with a labour market enforcement order (which can relate to offences under the National Minimum Wage Act 1998). Where a discretionary exclusion ground applies, such as if a labour market enforcement order is made against the supplier, contracting authorities can choose whether to exclude them.
The Debarment Review Service can also carry out investigations in accordance with the Act to establish whether a supplier can be added to the debarment list.
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