National Minimum Wage/Living Wage
National Minimum Wage penalty to be calculated per worker 2 April 2015
The Small Business, Enterprise and Employment Act 2015 is now an act of law and will amend the current penalty for underpayment of the National Minimum Wage (NMW).
In February 2014 the maximum penalty increased from £5,000 to £20,000. This penalty is currently per notice of underpayment (NOU) regardless of how many workers are covered under the NOU. The government said at the time that they would bring in legislation at the earliest opportunity so that the maximum £20,000 penalty can apply to each underpaid worker. Part 11 of The Small Business, Enterprise and Employment Act 2015 contains measures that amends section 19A of the NMW Act so that the maximum penalty will be determined by the amount owed to each worker as stated in the NOU and the limit on the penalty will be on the extent to which the amount owed to each individual worker can be taken into account.
Secondary legislation will be introduced to ensure that employers in breach of the NMW regulations will be subject to a fine of up to £20,000 for every underpaid worker.
What impact is the National Minimum Wage having in your area? 28 May 2015
The Low Pay Commission will be visiting areas across the UK to gather first hand evidence on the National Minimum Wage and low pay.
The Commission, whose purpose is to provide advice to the Government on matters relating to the National Minimum Wage (NMW) , would like to meet a number of people affected by low pay; to hear first-hand what impact the National Minimum Wage is having in your area. Any information received will be treated in confidence.
This essential evidence on low pay across different areas and employment sectors in the UK will help inform our wage rate recommendations to Government.
If you would like to meet the LPC Commissioners or would like further information, follow the link below for details.
Details of dates and locations
National Minimum Wage penalty to be calculated per worker 2 June 2015
The first commencement order made under the Small Business, Enterprise and Employment Act 2015 has been published and brings into effect the maximum penalty of £20,000 which can now be calculated on a per worker basis rather than on a per employer notice basis.
From 26 May 2015, The Small Business, Enterprise and Employment Act 2015 brought into effect:
Section 152 which inserts section 19A into the National Minimum Wage Act 1998 , to provide that the financial penalty in a notice of underpayment will be set at 100% of the arrears owed to each worker to who the notice relates, subject to a maximum of £20,000 per worker. Previously the £20000 limit applied to each notice of underpayment.
Scottish Government accredited as Living Wage employer 5 June 2015
CIPP Policy News Journal
25/04/2016, Page 236 of 453
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