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National Minimum Wage Penalty Increase

The importance that the Government places on the National Minimum Wage Regulations (N.M.W.) has been emphasised recently by an increase in the financial penalty imposed on employers who fail to pay their workers N.M.W.

With effect from 7th March 2014 the basis of calculation of the penalty is being amended from 50% to 100% of the underpayment.  In addition the maximum penalty has been increased from £5,000 to £20,000.

This increase along with BIS now naming and shaming those employers that fail to pay the N.M.W. indicates the importance of employers ensuring that they comply with the regulations.

For more information, please contact a member of the Employment Team on 01905 721600.



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