45. The British Retail Consortium argued that there should be more proactive labour law enforcement from Government agencies in the Pretty famous on infosee twitter vintage shirt In the same way UK garment manufacturing sector in order to give retailers the confidence to source more products from UK factories. It suggested that licensing could be used to tackle poor working conditions in UK factories.109 In May 2018, the Director of Labour Market Enforcement, Sir David Metcalf, published his office’s first annual strategy on labour market enforcement calling for a shift to more proactive enforcement methods.The report recommended a ‘significant increase’ in fines for non-compliance and greater use of prosecution. He argued that the current level of fines for non-payment of the minimum wage do not provide a strong enough incentive to comply – especially given the low probability of inspection and detection. For example, the report noted that HMRC’s National Minimum Wage team completed nearly 2,700 investigations in 2016/17. It said that with 1.3 million employers in the UK this suggests that the average employer can expect an inspection around once every 500 years. The report points out that for non-compliance with NMW employers only face a penalty of up to 200 per cent of the wage arrears–in addition to repayment of the arrears. In 2016/17, the average wage arrears were £110 per worker, implying a fine of only £220. Written evidence we received from HMRC shows that UK-based garment factory owners have been forced to pay out almost £90,000 to employees for non-payment of minimum wage. Since 2012 an average of £900 has been paid out to 126 factory workers, far exceeding the national average.
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