Enforcement of national minimum wage

Introduction date

TBA

Summary

The Department for Business, Enterprise and Regulatory Reform (BERR) consulted (to Aug 2007) on proposals for a simpler, clearer penalty regime for businesses that do not pay NMW, including:

• fixed penalty fines linked to the number of workers underpaid; and
• the requirement for businesses to pay interest or other cash to workers they have underpaid on top of repaying arrears, so the workforce are no longer giving 'interest-free loans' to their employers.

Provisions to strengthen the enforcement network are included in the Employment Act 2008, which received Royal Assent in Nov 2008.