1st Oct 2015 - 09:25
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Abstract
A Department for Business, Innovation and Skills survey has found that 80% of employers across all sectors did not know the fines they faced for not paying eligible employees at least the National Minimum Wage (NMW).
The survey also found that 74% didn’t know what the hourly NMW rate would be from October 1st. 53% didn’t know it was offence not to pay NMW or falsify pay records.
The penalty for not paying employees at least the NMW that they are entitled to includes a fine of up to £20,000 per worker for underpaying and businesses could be publically named.
Employers have said they are overwhelmingly in favour of the NMW, with 88%, across all sectors, thinking it was a good idea.
Employers have also seen other benefits from paying their employees the NMW, with 85% reporting an increase in production, loyalty and morale and frequent returning customers (80%).
Today’s new rates are: 21 and over, £6.70; 18-20, £5.30; under 18, £3.87; and apprentice, £3.30.
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