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'Minimum wage should not become a barrier'

NERA - €3m recovered
NERA - €3m recovered

The Minister for Labour Affairs has said he hopes the minimum wage does not become a barrier to employment.

Pointing out that the Irish minimum wage is the second highest in Europe, Billy Kelleher said the changed economic environment needs to be taken into account.

The Minister said he would be reluctant to give his personal views but a rate that is 'fair and equitable' is needed. He said the issue is now before the Labour Court and he said a constant review of the rate is taking place. The current rate is €8.65.

He said the employers and employees will be the ones that decide the rate into the future.

Meanwhile, employers are being warned not to take advantage of staff during the current economic downturn. The warning comes from the National Employment Rights Agency, which today published its annual report for 2008.

The agency recovered over €3m due to workers who had been underpaid by employers. The number of calls, interviews and inspections handled by the agency increased by 96% last year.

The problem of staff not being paid the minimum wage extends beyond foreign nationals according to the Director of NERA, Ger Deering. The problem is not just one for migrant workers, as the catering and security sectors were targeted during 2008.

NERA said that in 2009 it will concentrate on the contract cleaning and hospitality sectors to ensure employers in all sectors are aware of their obligations and the rates of pay due to staff.

Mr Deering said there are significant breaches when it comes to the minimum wage and the non-keeping of records. He urged people to come forward if they have concerns over the treatment or payment they are receiving from their employer.