National minimum wage: £6.31 per hour or £20,000 per employee?

More than 700 employers have been fined for breaching national minimum wage (NMW) laws, with approximately £4m being paid out to workers who have missed out in their pay packets.

From February 2014, the maximum penalty for employers who fail to pay the NMW to their employees is set to increase from £5,000 to £20,000, with the intention in the near future for this increased fine to be levied in respect of each underpaid worker.

The move represents an attempt by the government to crack down on employers who fail to pay the NMW. Along with this increased penalty, employers falling foul of the NMW rules may find themselves ‘named and shamed’ as well as potentially facing HMRC investigation and/or prosecution…

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