In August 2016 almost 700 organisations in the UK were fined £1.4 million for failing to pay employees the national minimum wage. This penalty was in addition to the published £3.5 million in outstanding wages owed to employees.
In 2013 the government made the decision to publicly name employers who failed to pay the national minimum wage and have recently increased the financial penalty from 50% of the owed monies to 100%. The maximum penalty has also been increased, from £5000 to £20,000, however parliament are working alongside HM Revenue and Customs to inspect organisations who fail to comply with the law and prosecute them accordingly.
The National Minimum wage is a vital part of the governments’ policy to ensure equality and ensuring people can stay in work.
The new rates from 1st April 2017 are as follows:
|Year||25 and over||21 to 24||18 to 20||Under 18||Apprentice|
|October 2016 (current rate)||£7.20||£6.95||£5.55||£4.00||£3.40|
If we can help you with this or any other HR issue, please do not hesitate to contact
a member of our HR Team at HR Services Scotland Ltd on 0800 652 2610.
For more information about the services that we provide at HR Services Scotland,
please get in touch with us here.