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NMW penalties to increase

26.02.14

The maximum penalty for employers who fail to pay their employees the National Minimum Wage (NMW) will rise from £5,000 to £20,000, if new proposals are approved.

At the end of last year, the Prime Minister announced that the financial penalty will rise from 50% to 100% of underpaid employees.

The government are also looking to introduce further legislation into the NMW Act 1998 which would make the maximum penalty of £20,000 apply to each worker.

"Anyone entitled to the National Minimum Wage should receive it. Paying anything less than this is unacceptable, illegal and will be punished by law. So we are bringing in tougher financial penalties to crackdown on those who do not play by the rules. The message is clear – if you break the law, you will face action.

"As well as higher penalties, we have made it easier to name and shame employers who fail to pay their workers what they are due. We are working with HM Revenue and Customs to investigate non-compliance and facilitate prosecutions in the most serious of cases. We also make sure that every complaint made to the free and confidential Pay and Work Rights Helpline is looked at.

"The National Minimum Wage plays an important role in supporting low-paid workers whilst making sure they can still find work. Enforcing this is a key to fairness in our workforce."

Business Secretary, Vince Cable

By working with Consort as self-employed contractors, individuals have full flexibility and control over the way they work. The only responsibilities left to them is to keep track of their expenses and put enough money to one side to pay taxes at the end of the financial year. They are not employees and hence the raft of employment legislation does not apply.

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