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<p>The Government takes the enforcement of National Minimum Wage very seriously and
has increased the financial penalty percentage from 50% to 100% of the unpaid wages
owed to workers, and the maximum penalty from £5,000 to £20,000. These new limits
are now in force where arrears are identified in pay reference periods on or after
7 March 2014. The Government will also bring in primary legislation as soon as possible
so that the maximum £20,000 penalty can apply to each underpaid worker.</p><p> </p><p>The
vast majority of employers pay penalties upon being issued with a Notice of Underpayment.
Where they do not, HM Revenue and Customs (HMRC) will seek to recover through debt
management processes. In the period 2009/10 - 2013/14 HMRC issued over 3,500 penalties
totalling nearly £3m. Of these, 2 per cent are currently being pursued through debt
management processes..</p><p> </p>
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