Latest news : Minimum wage for interns

HM Revenue & Customs (HMRC) is beginning a campaign aimed at ending the exploitation of interns, with fashion houses being the main targets. 16/12/2011

HMRC has written to a number of fashion houses and designer labels warning them to pay the National Minimum Wage to all interns.

The letters are being sent to fashion houses involved in London Fashion Week in September 2011 and who are expected to do so again at the capital’s fashion week in February.

‘These letters give fashion houses plenty of warning that they are under scrutiny. If they are not playing by the rules, now is the time to put things right. Non-payment of the national minimum wage is not an option.

‘Our message is clear: don’t wait for us to come knocking on your door; put things right now and avoid a penalty and possible prosecution,’ said Michelle Wyer, HMRC’s assistant director for National Minimum Wage.

The letters have been addressed to 102 fashion labels and have been issued with compliance visits. These visits will commence in the New Year.

Evidence has suggested that young workers who apply for internships or work experience are unlikely to proactively complain about non-payment of NMW. To better tackle the issue, HMRC will carry out targeted enforcement on trade sectors that are known to traditionally use interns and work placements as a means for young people to gain the experience necessary to work in these trades.

This procedure follows complaints from the Low Pay Commission regarding the lack of enforcement action.