NMWM13010 | Issuing Notices of Underpayment: enforcement policy

National Minimum Wage enforcement policy underpins National Minimum Wage legislation (NMWM01030). It aims to:

• encourage employers to voluntarily comply, so that workers are paid their legal entitlement at the right time;

• change the behaviour of employers by deterring potential non-compliance;

• protect vulnerable workers by penalising employers who fail to pay the National Minimum Wage on time;

• ensure workers who are not paid on time receive arrears which take into account the length of time they have been underpaid;

• prevent employers gaining a competitive advantage over other businesses by unlawfully depressing workers’ pay;

• demonstrate to the business community that non-compliance with National Minimum Wage legislation is unacceptable.

The policy:

• sets out when a Notice of Underpayment should be issued (NMWM13030) and when this should penalise non-compliant employers by imposing a penalty (NMWM13180);

• establishes a civil enforcement regime if arrears and/or penalties remain outstanding;

• makes provision for criminal prosecutions for the more serious cases of non-compliance.

The Policy on HM Revenue & Customs enforcement and prosecutions is published by the Department for Business and Trade (NMWM02020) and can be found on GOV.UK.

Prior to 6 April 2009, enforcement notices and penalty notices were issued to enforce payment of National Minimum Wage arrears (NMWM13320).