National Minimum Wage penalty to be calculated per worker

01 June 2015

The first commencement order made under the Small Business, Enterprise and Employment Act 2015 has been published and brings into effect the maximum penalty of £20,000 which can now be calculated on a per worker basis rather than on a per employer notice basis.

From 26 May 2015, The Small Business, Enterprise and Employment Act 2015 brought into effect:

• Section 152 which inserts section 19A into the National Minimum Wage Act 1998, to provide that the financial penalty in a notice of underpayment will be set at 100% of the arrears owed to each worker to who the notice relates, subject to a maximum of £20,000 per worker. Previously the £20000 limit applied to each notice of underpayment.