It is a stark warning for employers who choose to pay their staff less than the current minimum wage – and they face fines of between £5,000 to £20,000. The financial penalty is calculated on the percentage of the total underpayment, with an increase of a further 100% (not 50%) as the penalty for the failure to pay.
So – those employers who provide accommodation as part of the package need to be aware that this will impact on their calculations of pay.
Those who employ apprentices or provide traineeships will continue to be exempt from having to pay the NMW. Traineeships are defined as skill programmes which last a maximum of 6 months and are aimed at young people aged between 16 and 23 years, without skills or work experience needed to get a sustainable job.
The age range for traineeships will be extended to include 24 year olds at some stage later this year or early next year.
So – note to all employers – watch this website!