National minimum wage penalties to increase to £20k

The Government has confirmed that employers who do not pay their workers the National Minimum Wage (NMW) will face an increased penalty of up to £20,000.

Currently, the financial penalty for breaching NMW law is calculated as 50% of the total underpayment for all workers found to be underpaid. The maximum penalty is £5,000. The penalty is reduced by 50 per cent if the unpaid wages are paid within 14 days.

The Regulations making the changes are expected to come into force in February 2014 (subject to Parliamentary approval).

If you are an employer and would like to discuss a national minimum wage issue, please get in touch. We have a successful track record of advising employers on a wide range of employment law issues, including advice on NMW law and associated litigation. For further information, please click here or contact our specialist employment law solicitors on 0207 956 8699.