February 2007

Fines for Non Payment of the National Minimum Wage

Trade and Industry Secretary Alistair Darling has announced that employers who refuse to pay the minimum wage could face a £200 fine for every worker they underpay.

Employers already have to pay back arrears they owe to the worker and now those who refuse to pay up will be penalised.

Alistair Darling said, ‘Workers have the right to a decent minimum wage and we are determined they get it. To those employers avoiding the minimum wage the message is don't pay it and you'll pay the fine. In the last year alone the government's enforcement teams across the UK helped over 25,000 workers get more than £3m back in unpaid wages.’

Where employees complain they are not getting the minimum wage, HMRC investigate the employer. If the complaint is upheld and the employer will not pay then a warning is given. The employer must repay the arrears within seven days, if they do not they risk a fine.

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