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Informal economy mentioned in the Low Pay Commissions Report on the Minimum Wage
12 May 2009
"We Understand that those who operate in the informal economy requires extra effort and resource and results may not appear to justify the effort put in. This is true of tackling any activity in the informal economy. Actions planned to enable enforcement agencies to more readily share information and intellegence will, we believe, will help make headway as those operating in the informal economy are unlikely to be complying with a range of employment and tax laws, not just the minimum wage. As we move further into the economic downturn, the lure of the informal economy will become greater for some employers, and as unemmployment rises, for some workers. We recommend that the Government gives urgent consideration to measures that can be taken to effectively tackle employers in the informal economy" Read the full report here
"The black market will grow during a recession reflecting a wage level that people are prepared to work at which may be below the minimum wage" UCG member, cleaning services, evidence.
"Some labour providers feel they have little chioce but to join those evading tax or go out of business" Association of Labour Providers, evidence.