National Minimum Wage

Business, Enterprise and Regulatory Reform written question – answered on 5th February 2009.

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Photo of Tom Levitt Tom Levitt Labour, High Peak

To ask the Minister of State, Department for Business, Enterprise and Regulatory Reform what discussions he has had with the Chancellor of the Exchequer on the range of penalties for non-compliance with national minimum wage regulations; and if he will make a statement.

Photo of Pat McFadden Pat McFadden Minister of State (Department for Business, Enterprise and Regulatory Reform) (Employment Relations and Postal Affairs), Member, Labour Party National Executive Committee

The Government are committed to simple, effective NMW enforcement and HMRC follow-up all complaints of underpayment.

The Employment Act 2008 strengthens the NMW enforcement regime. From 6 April 2009 there will be automatic penalties of up to £5,000 for employers who do not comply and a fairer method of calculating arrears. This will help to ensure that vulnerable workers are paid the minimum wage.

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