£20,000 Fines for National Minimum Wage Breaches

Fines for employers who fail to pay their workers the national minimum wage are set to increase substantially this February.

Employers will face a penalty of up to 100% of the unpaid wages of all workers underpaid and a maximum penalty of £20,000. Currently the penalty is set at up to 50% of the unpaid wages and a maximum penalty of £5,000. 

Regulations making the changes have been laid before Parliament and are expected to come into force in February. 

The Government also plans to go further and will bring in legislation at the earliest opportunity so that the £20,000 maximum penalty can apply to each underpaid worker. 

The increased penalties follow changes last year which made it easier to name and shame employers who are not paying the national minimum wage.