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Enforcement measures for NMW and NLW

15 September 2015
Issue: 4518 / Categories: News , Companies

A package of measures will enforce compliance with the national minimum wage (NMW) and the new national living wage (NLW).

The proposals announced on 1 September by the Business Secretary include:
 
  • doubling the penalties for non-payment of the NMW and NLW;
  • increasing the enforcement budget;
  • setting up a new team in HMRC to take forward criminal prosecutions for those who deliberately do not comply; and 
  • ensuring that anyone found guilty will be considered for disqualification from being a company director for up to 15 years. 
The calculation of penalties for employers that do not comply will rise from 100% of arrears to 200%. This will be halved if they pay within 14 days. The overall maximum penalty of £20 000 for each worker will remain unchanged. In 2014/15 HMRC investigated 2 204 NMW cases. They found arrears in 735 cases for 26 318 workers totalling...

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