Stronger penalties for minimum wage breaches from March 2014

01 March 2014
Stronger penalties for minimum wage breaches from March 2014

Effective 7 March 2014, the government has announced harsher penalties for employers who breach National Minimum Wage legislation.

Employers will be required to pay 100% of salaries underpaid as a penalty, as opposed to just 50%. The cap on penalties will also increase from £5,000 to £20,000 per employer.

The government has stated that intends to introduce legislation as soon as possible so that the £20,000 cap applies per employee.

The stricter rules mean that deliberate or accidental underpayment of staff will be more costly to employers.†Therefore employers should ensure they are paying staff appropiately, in line with current minimum wage rates.

For further details on the National Minimum Wage, see the pay section of HRBird.

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