NMW and LW penalties for non-compliance
06 Jul, 2017
There are penalties for employers who don’t pay staff what they are legally entitled to under the National Minimum Wage (NMW) and National Living Wage (NLW) rates.
Employers who have paid a worker below the correct minimum wage must pay any arrears immediately. If not, there are penalties for non-payment of up to 200% of the amount owed, unless the arrears are paid within 14 days. The maximum fine for non-payment can
be up to £20,000 per employee and employers who fail to pay, face a possible 15-year ban from being a company director.