Minimum Wage

(asked on 21st December 2017) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what information his Department holds on the number of employers that have been fined the maximum penalty for breaches of the National Minimum Wage Act 1998 in each year since 2010.


Answered by
Mel Stride Portrait
Mel Stride
Shadow Chancellor of the Exchequer
This question was answered on 11th January 2018

HM Revenue and Customs (HMRC) always applies the maximum applicable penalty to every Notice of Underpayment served on an employer for National Minimum Wage (NMW) arrears owed to workers. How penalties are quantified is set out in NMW legislation, and HMRC has no discretion on the penalty rate or amount.

The penalty applied is based on the value of arrears, and will vary according to the penalty regime that applied to the pay reference period when the arrears were accrued.

Further information on penalties and how they are quantified can be found on pages 10-11 of the NMW enforcement policy guidance:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/656568/nmw-enforcement-beis_-_policy_doc_-_full_vFINAL__3_.pdf

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