News Article

Proposed fines for failing to pay National Minimum Wage


Posted by Carl Gryniewicz | Date Posted 09.08.2007 | Time Posted 10:40:04 | Views: 550

The Government has announced a proposal to fine employers who do not pay their employees the National Minimum Wage (NMW). At present, employers face criminal prosecutions and a fine of up to £5,000 for failure to pay NMW.

The proposed policy will mean that where Revenue and Customs (HMRC) have issued an enforcement notice on an employer specifying the amount owed to workers who have been paid less than NMW and the employer has not complied with this enforcement notice, HMRC may serve the employer with a penalty notice. The penalty will be calculated using a statutory formula based on the NMW current at the time. Presently, this would mean a fine of just over £200 per employee.

NMW Increases: The increases in NMW have been announced - from 1 October 2007 the main Adult Rate will rise from £5.35 to £5.52 per hour and the Development Rate (18-21 inclusive) from £4.45 to £4.60 per hour. The rate for workers aged 16 to 17 years will increase from £3.30 to £3.40.


Published in sections: Health and Safety ::

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