10 Sep Government announces new fair pay measures
The government has introduced a package of new measures to help ensure that employers pay their staff at least the minimum wage they are entitled to. The fair pay measures will also ensure that employees that are entitled to the new National Living Wage coming into effect next April are also paid what they are owed.
The new measures will see the penalties for non-payment of the National Minimum Wage and the new National Living Wage doubled from 100% of arrears to 200%. The penalties will be halved if employers pay within 14 days and the overall maximum penalty remains at £20,000 per worker.
There will also be an increase in HMRC’s enforcement budget and anyone found guilty of not paying workers what they are entitled to will be considered for disqualification from being a company director for up to 15 years.
A new team of compliance officers will investigate the most serious cases of employers not paying the National Minimum Wage and National Living Wage when it is introduced in April 2016. The new team will have power to use all available sanctions, including penalties, prosecutions and naming and shaming the most exploitative employers.
Business Secretary Sajid Javid said:
'There is no excuse for employers flouting minimum wage rules and these announcements will ensure those who do try and cheat staff out of pay will feel the full force of the law.'
The Business Secretary also announced that a new Director of Labour Market Enforcement and Exploitation will be created.