Fair pay measures crack down on wage cheats
MEASURES to ensure fair pay for workers are to be implemented as the government attempts to crack down on wage “cheats.”
The measures include doubling the penalties for non-payment of minimum wage and the National Living Wage announced in the Budget. This will be introduced in April 2016, and means firms must pay £9.00 an hour to workers by 2020.
The enforcement budget for regulations has been increased so there will be a dedicated team to handle the most serious cases, and a new team at HMRC will take forward criminal prosecutions for those who do not comply.
The overall maximum penalty of £20,000 per worker remains unchanged.
Anyone found guilty under these regulations may be disqualified from holding a company directorship post for up to 15 years.
Business Secretary Sajid Javid said: “There is no excuse for employers flouting minimum wage rules and these announcements will ensure those who do try and cheat staff out of pay will feel the full force of the law.
“This one nation government is committed to making work pay and making sure hardworking people get the salary they are entitled to.”
The Government has also announced today it will improve the guidance and support made available to firms on compliance and will work with payroll providers to be sure payroll software contains checks that staff are being paid what they are entitled to.
