National Minimum Wage changes: A technical summary

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A number of changes were made to the National Minimum Wage Act 1998 (NMWA 88) by the Employment Act 2008. The latter came into force on 6 April 2009, and makes the following broad changes :

  • Arrears will in future be calculated at the current rate of minimum wage, rather than the rate applying when the arrears arose;
  • There is a new automatic penalty which applies to all non payment of minimum wage, under which the minimum penalty will be £100 and the maximum £5,000.
  • There is a new right to prosecute offenders in the Crown Court and impose an unlimited financial penalty. This will generally apply to failures to pay minimum wage and obstruction of officers carrying out a minimum wage enquiry;
  • Extra rights for officers to take records away from employ...

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Rebecca Benneyworth
Partner
Rebecca Benneyworth Training Consultants
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