Minimum wage penalty to rise to £20,000

Rogue employers who fail to pay workers the national minimum wage will be subject to fines of up to £20,000, an increase from £5,000.

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TUC: Government must enforce minimum wage fines

The TUC welcomed the government pledge to quadruple the penalty for employers found paying less than the minimum wage, but said it was crucial that the new rules were actually implemented.

Read: Minimum wage penalty to rise to £20,000

TUC General Secretary Francis O'Grady said:

The TUC has long argued that successive governments have been soft on minimum wage dodgers. The plans announced today to quadruple penalties for rogue bosses who cheat staff out of the minimum wage should make employers think twice before illegally underpaying their staff.

It's great that the penalties for flouting the minimum wage have been raised and that it's easier to name and shame offending employers.

It's crucial now that HMRC is given the resources they need to enforce these new rights properly.

Cable pledges crackdown on rogue employers

Business Secretary Vince Cable said the government was committed to punishing rogue employers who were paying staff less than the national minimum wage.

Paying anything less than this is unacceptable, illegal and will be punished by law. So we are bringing in tougher financial penalties to crackdown on those who do not play by the rules. The message is clear - if you break the law, you will face action.

The national minimum wage plays an important role in supporting low-paid workers whilst making sure they can still find work. Enforcing this is a key to fairness in our workforce.

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Minimum wage penalty to rise to £20,000

Rogue employers who fail to pay their staff the national minimum wage will be subject to fines of up to £20,000 - four times the previous figure, the Government has announced.

Employers who fail to pay workers the national minimum wage will face bigger penalties. Credit: Press Association

The maximum penalty will increase from £5,000, and is set to come into force next month, with ministers pressing for further legislation so that £20,000 can apply to each underpaid worker.

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