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National Minimum Wage penalties to increase to £20,000
Employers who fail to pay their staff the national minimum wage will face an increased penalty of up to £20,000 as part of a government crackdown.

At the moment, employers found breaking the law must pay the wages that are due to their workers, plus an additional financial penalty to HMRC. The fine is calculated as 50% of the total underpayment for all workers found to be underpaid, with a maximum penalty of £5,000.

But under new proposals, the financial penalty will rise from 50% to 100% of the total wages owed, with the maximum fine quadrupling to £20,000. If approved by parliament, the new rules are expected to come into force this February.

As part of a stronger deterrent strategy, the government also wants to introduce further legislation so that an employer can be fined up to £20,000 for each worker that they underpay.

The government has also said that it wants to make it easier to “name and shame” guilty employers.
Posted on 19 Nov 2016


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