The Government announced this week a new package of measures to ensure employers pay their workers the National Minimum Wage the new National Living Wage. These include tougher penalties and disqualifying employers from being a company director for up to 15 years.
From April 2016, under the new Government plan, penalties for non-payment of the National Minimum Wage and the new National Living Wage will double from 100% of the amount owed to 200%, unless the arrears are paid within 14 days.
The maximum fine for non-payment will remain at £20,000 per worker. Anyone found guilty of deliberately not complying could be disqualified from being a company director for up to 15 years.
Business Secretary Sajid Javid said:
“There is no excuse for employers flouting minimum wage rules and these announcements will ensure those who do try and cheat staff out of pay will feel the full force of the law.”
Currently the National Minimum Wage for adults (21 years and older) is £6.50, but this is set to raise to £6.70 in October 2015. Under the new system, workers aged 25 and over will be entitled to receive £7.20 an hour, rising to £9 an hour by the end of the decade.
Payroll Services in Essex
Worried about how this will affect your business?
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