Kevin Brennan – 2016 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Kevin Brennan on 2016-03-22.

To ask the Secretary of State for Business, Innovation and Skills, what progress his Department has made on implementing its plans to impose financial penalties of up to £20,000 per worker against companies who fail to pay the national minimum wage.

Nick Boles

From 26 May 2015, the maximum penalty for underpayment of the National Minimum Wage (NMW) increased from £20,000 per notice of underpayment (NoU) to £20,000 per worker.

From 1 April 2016 the penalty has been increased to 200% of the total underpayment for all of the workers specified in a NoU. By increasing penalties for underpayment of the NMW it is intended that employers, who could otherwise be tempted to underpay, comply with the law and working people receive the money they are legally due. The maximum penalty will remain at £20,000 per worker.