Minimum wage fines to increase
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Employers who do not pay their workers the National Minimum Wage (NMW) will face increased financial penalties following the introduction of new regulations in February 2014.
Currently employers that break NMW law must pay the unpaid wages plus a financial penalty calculated as 50 per cent of the total underpayment for all workers found to be underpaid. The maximum penalty an employer can face is £5,000.
The new regulations will see the financial penalty percentage increase from 50% to 100% of the unpaid wages owed to workers. The maximum penalty will increase from £5,000 to £20,000.
The TUC has welcomed the fourfold increase in fines. General Secretary Frances O’Grady said: “The TUC has long argued that successive governments have been soft on minimum wage dodgers.
“The plans to quadruple penalties for rogue bosses who cheat staff out of the minimum wage should make employers think twice before illegally underpaying
their staff.
“It’s great that the penalties for flouting the minimum wage have been raised and that it’s easier to name and shame offending employers. It’s crucial now that HMRC is given the resources they need to enforce these new rights properly.”
www.tuc.org.uk/economic-issues/britain-needs-pay-rise/workplace-issues/employmentrights/quadrupling-fines-should
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