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Currently, around 600 company bosses are under investigation for possible breaches of the new minimum wage rules - and a new phone line encouraging employees to grass on law-breakers could increase that number further.

The controversial statutory minimum of £3.60 an hour for adults and £3 an hour for workers aged 18 to 21 came into force on April 1, giving pay rises to over two million workers in the UK.

Employment consultant James Davidson says the effect on UK business has been surprisingly low: "Many pundits were predicting huge job losses across the whole service industry, but, in the overwhelming majority of cases, employers have simply raised their pay to the new minimum.

"As usual, the end results were a lot less spectacular than the predicted chaos."

For a free copy of the Department of Trade and Industry's guide to the minimum wage, phone 0845 8450 360.

To anonymously report law-breaking bosses and companies, call 0845 6000 678!

Gary Cutlack

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