National minimum wage penalties increase

Implementation date: 7 March 2014

The National Minimum Wage (Variation of Financial Penalty) Regulations 2014 increase the penalty imposed on employers that fail to pay employees the national minimum wage. The employer is required to pay the unpaid wages plus a penalty calculated as 100% (increased from 50%) 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 maximum of £20,000 (increased from £5,000).