National Minimum Wage Fine Rises to £20k

Employers who do not pay their workers the national minimum wage (NMW) will face penalties of up to £20,000 as of next month. The maximum penalty will increase from £5,000, the Government said, with ministers also pushing for further legislation so that £20,000 can apply to each underpaid worker. Speak to an employment law solicitor to make sure you’re up to speed with all aspects of employment.

Vince Cable, the Business Secretary, said anyone entitled to the national minimum wage should receive it. “Paying anything less than this is unacceptable, illegal and will be punished by law,” he said. “So we are bringing in tougher financial penalties to crackdown on those who do not play by the rules. The message is clear – if you break the law, you will face action.”

The Government will also make it easier to ‘name and shame’ employers who fail to pay the NMW. “The national minimum wage plays an important role in supporting low-paid workers whilst making sure they can still find work. Enforcing this is a key to fairness in our workforce,” Mr Cable added. It comes as Labour called for better enforcement of the national minimum wage during a debate in the Commons. The party called on the Government to strengthen the statutory rate, encourage more employers to pay a living wage and bring in higher fines for firms found not paying it.

Our Employment team provides advice on the employment aspects of all major business decisions. For advice, contact a member of the team, call us on 01895 207892 or email employment@ibblaw.co.uk.