NATIONAL MINIMUM WAGE PENALTIES INCREASED
February 25 2014.


Employers who do not pay their workers the National Minimum Wage (NMW) will face an increased penalty of up to £20,000.


Currently, employers who break NMW law must pay the unpaid wages plus a financial penalty calculated as 50 per cent of the total underpayment for all workers found to be underpaid. The maximum penalty an employer can face is £5,000.

If parliamentary time allows, the financial penalty percentage will increase from 50 per cent to 100 per cent of the unpaid wages owed. The maximum penalty will increase from £5,000 to £20,000. The penalty is reduced by 50 per cent if the unpaid wages are paid within 14 days.

These changes are expected to be implemented by the end of February 2014. CLICK HERE for further information.