Matthew Thompson
1 minute length
Posted: 15th January 2014

Is your business at risk of a £20,000 fine?

Small businesses that do not pay their staff the minimum wage could face fines of up to £20,000, under new rules announced today.

Previously, employers faced a maximum fine of £5,000 plus a financial penalty of 50% of the total underpayment to employees. Under the new system this penalty would increase to 100% of the underpayment and the fine would increase to £20,000.

“Anyone entitled to the national minimum wage should receive it”, Cable stated. “Paying anything less than this is unacceptable, illegal and will be punished by law. So we are bringing in tougher financial penalties to crack down on those who do not play by the rules. The message is clear – if you break the law, you will face action.”

“As well as higher penalties, we have made it easier to name and shame employers who fail to pay their workers what they are due. We are working with HM Revenue and Customs to investigate non-compliance and facilitate prosecutions in the most serious of cases. We will also make sure that every complaint made to the free and confidential pay and work rights helpline is looked at.”

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