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Employers who fail to pay the national minimum wage (NMW) could face a £200 fine following an announcement by Trade and Industry secretary Alistair Darling.

Ailstair Darling
Ailstair Darling
Employers are already required to pay back arrears owed to workers, but now those who refuse could also face a £200 penalty for every underpaid employee.

In the last year alone, the Department of Trade and Industry (DTI) received over 61,000 calls to its minimum wage helpline and helped over 25,000 workers recover more than £3.2m in unpaid wages.

In cases where workers complain they are not getting the minimum wage, HMRC investigate the employer. If the complaint is upheld and the employer will not pay then he is given a warning to repay the arrears within seven days. Those employers who do not pay within seven days risk a fine.

Failure to pay minimum wage could also result in prosecution, risking a criminal record and a fine of up to £5,000. The DTI says that several cases are currently under investigation, and pending criminal prosecution.

From 1 October 2006 the main national minimum wage rate for workers aged 22 and over increased to £5.35 an hour from £5.05 an hour. The development rate for 18-21 year olds increased to £4.45 an hour from £4.25 an hour. The development rate for 16-17 year old increased to £3.30 an hour from £3.00 an hour.

Dwyer Scullion
Guest Editor, TaxationWeb News

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Department of Trade and Industry: Fines for minimum wage non-payers

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Article Added Friday, 12 January 2007 | 778 Hits

 

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