Change to financial penalty for underpayment of national minimum wage
Implementation date: 26 May 2015
The Small Business, Enterprise and Employment Act 2015 (Commencement No.1) Regulations 2015 increase the penalty imposed on employers that fail to pay employees the national minimum wage to a maximum of £20,000 per worker. Previously, the maximum penalty was £20,000 for each notice of underpayment.
The employer is required to pay the unpaid wages plus a penalty calculated as 100% of the total underpayment to all workers who are specified in the notice of underpayment issued to the employer by HM Revenue and Customs, subject to a minimum of £100 and a maximum of £20,000.