Increase in rates from 1st October
With effect from 1st October, hourly National Minimum Wage rates will increase to:
• £5.80 (for workers aged 22 and above)
• £4.83 (for those aged 18-21) and
• £3.57 (for under 18s over compulsory school age).
Employers who fail to pay the minimum wage face an automatic penalty of between £100 and £5,000 based on the amount they owe to their workers, even if the underpayment was a mistake. The employer will also be required to repay any arrears (at the current rate, regardless of when the underpayment started).HMRC can pursue arrears claims for workers going back up to six years.
Deliberate refusal to pay the National Minimum Wage is one of six criminal offences under the legislation which can lead to potentially unlimited fines. The others are: failure to keep sufficient records, keeping false records, producing false records or information, intentional obstruction of a compliance officer and refusal to give information to a compliance officer.
For clarification of your responsibilities as an employer under National Minimum Wage legislation, contact our employment team at email@example.com.