NMWM15145 | Enforcement and proceedings: Labour Market Enforcement Undertakings and Orders (LMEU/LMEO)

Relevant legislation

The legislation that applies to this page is as follows:

• National Minimum Wage Act 1998, sections 31 and 32

• Employment Rights Act 2025, sections 140, 142 and 144 to 146

Summary

Labour Market Enforcement Undertakings (LMEUs) and Labour Market Enforcement Orders (LMEOs) are enforcement tools introduced by the Immigration Act 2016 and consolidated by the Employment Rights Act 2025 (ERA).

Purpose

To prevent or reduce the risk of labour market offences by encouraging a subject (an employer or person ordinarily) to voluntarily undertake measures to aid compliance and resorting to court-imposed orders where they resist.

When to consider

Where there is reasonable belief that a labour market offence has been committed or is being committed.

For National Minimum Wage purposes, labour market offences are those under sections 31 and 32 of the National Minimum Wage Act 1998 and now additionally in sections 140, 142 and 144 to 146 of the ERA.

Where an employee is employed by a company, both the employing body corporate, and any culpable individual officers of the company can be guilty of an offence.

Labour Market Enforcement Undertakings (LMEU)

Where an enforcement officer believes a subject has committed or is committing a labour market offence, they may notify that subject to give an undertaking. An LMEU will include measures to which the subject must adhere.

Measures should prevent the offence that led to the undertaking from continuing or reoccurring. The undertaking can last for a maximum of two years but may be released early if the enforcement officer considers the measures are no longer necessary. Compliance is monitored through checks.

Labour Market Enforcement Orders (LMEO)

An LMEO is a civil court order. We may apply for an order where an LMEU is refused or breached, or following conviction for a labour market offence. Applications are made to the appropriate court such as: a magistrates' court in England and Wales, a sheriff court in Scotland, or a court of summary jurisdiction in Northern Ireland.