National Minimum Wage penalties now apply per employee
Most adult workers in the United Kingdom must be paid at least the National Minimum Wage (NMW).
There are four different rates of pay under the National Minimum Wage:
● for workers aged 21 and over, the current rate of pay is £6.50 per hour
● for workers aged 18 – 20, the current rate of pay is £5.13 per hour
● for workers aged 16 (who are above school leaving age) and 17, the current rate of pay
is £3.79 per hour
● for apprentices who are either under 19 or in the first year of their apprenticeship, the
current rate of pay is £2.73 per hour.
From 26 May 2015, the penalty for underpaying the NMW is 100 per cent of the underpayment owed to each worker, up to a maximum of £20,000 per worker (previously the entire fine was capped at £20,000). The provision is contained in the Small Business, Enterprise and Employment Act 2015.
Further details of the increase in NMW penalties can be found here.
For more on the NMW in general, see this section of our website.