Failure to pay National Minimum Wage

Future changes: increased fines for those who fail to pay the National Minimum Wage

An employer who is caught paying less than the NMW is required to pay the unpaid wages and also a financial penalty of 50% of the total underpayment, up to a maximum of £5,000. The penalty will increase to 100% of the unpaid wages, with a new maximum of £20,000.

Regulations introducing these new limits came into force in February 2014.