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<p>The enforcement of the National Minimum Wage and National Living Wage (NMW) is
a top priority for the Government; we have increased HMRC’s enforcement budget to
a record high of £26.3 million for 2018-19.</p><p> </p><p>Last year, HMRC identified
a record £15.6 million in arrears of wages for over 200,000 workers. In addition,
HMRC issued £14.1 million in financial penalties to employers who breached NMW rules;
the highest amount ever.</p><p> </p><p>In addition to civil penalties, since April
2016 Labour Market Enforcement Agencies have been making use of new powers to issue
Labour Market Enforcement Undertakings and Orders. A two year custodial sentence and/or
unlimited fine is available where a business breaches an LME order.</p><p> </p><p>Prosecution
is reserved for the most egregious breaches of NMW law. In most cases it is not the
best approach to help workers. Criminal sanctions against employers can mean that
workers must wait considerably longer for their lost earnings to be paid back.</p>
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