Tuesday, March 3, 2009

Penalties for Employers with National Minimum Wage arrears

From 6 April 2009 employers could receive an automatic penalty if HMRC find National Minimum Wage (NMW) arrears.

Penalties will range from £100 to £5,000 in addition to the arrears of pay owed to the employees. Employers who settle within 14 days of notification will receive a 50 per cent discount of the penalty for prompt payment. A serious offence could lead to a criminal sentence or an unlimited fine.

Investigating officers will be given increased powers including powers to remove the NMW records from an employer’s premises. They will also be able to remove complete records rather than having to determine which part relates to NMW.



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