Penalty for failure to pay National Minimum Wage to increase to £20,000

The government has confirmed increases to the penalty for failure to pay the national minimum wage (NMW) to workers.  The current penalty is 50% of the unpaid wages with a maximum of £5,000. 

The increased penalty, which is expected to come into force in February, is 100% of the unpaid wages with a new maximum penalty of £20,000.  The government also intends to introduce legislation as soon as possible to apply the maximum penalty to each underpaid worker.

Vince Cable has said that 'the message is clear - if you break the law, you will face action.'

Petra Venton