National Minimum Wage Fine Increased for Non-conforming Employers
The maximum fine for an employer’s failure to pay an employee the National Minimum Wage has been increased.
Until the 25th May the maximum penalty that could be imposed was £20,000 per notice of national minimum wage underpayment, which was the same fine regardless of the number of employees that had been underpaid by the employer. However from 26th May, the £20,000 maximum penalty is now applicable per employee who has been underpaid, making the potential fines for employers significantly higher.
As a reminder, the current National Minimum Wage rates are detailed below:
16/17 years – £3.79
18-20 years – £5.13
21 years+ – £6.50
Apprentice – £2.73
From 1st October 2015 the rates are set to increase as follows:
16 & 17 year olds – £3.87
18-20 year olds – £5.30
21 years+ – £6.70
Apprentices – £3.30
If you would like any help with national minimum wage fines, changes, and much more we can help to keep you up to date. Please call us on 01280 875220 or email [email protected] and we will be happy to help.