Increased penalties for failure to comply with National Minimum Wage

The Government has announced that employers who do not pay their workers the National Minimum Wage (NMW) will, from February 2014, face an increased penalty of up to £20,000.

At present, the penalty for failing to pay NMW is calculated at 50 per cent of the total underpayment for all workers found to be underpaid, with a maximum penalty of £5,000.

The increased penalty marks a tougher stance from the Government and follows on from changes made last year which made it easier to "name and shame" rogue employers who fail to meet NMW requirements.

Business Secretary Vince Cable said: "Anyone entitled to National Minimum Wage should receive it. Paying anything less than this is unacceptable, illegal and will be punished by law.

"The message is clear - if you break the law, you will face action."