Statutory Instruments
2014 No. 547
Terms And Conditions Of Employment
The National Minimum Wage (Variation of Financial Penalty) Regulations 2014
Made
6th March 2014
Coming into force
7th March 2014
A draft of these Regulations was laid before Parliament in accordance with section 51(5) of the National Minimum Wage Act 1998( 1 ) and approved by resolution of each House of Parliament.
The Secretary of State, in exercise of the powers conferred by section 19A(8)( 2 ) of that Act, makes the following Regulations.
Citation and commencement
1. —(1) These Regulations may be cited as the National Minimum Wage (Variation of Financial Penalty) Regulations 2014.
(2) These Regulations come into force on the day after the day on which these Regulations are made.
Amendments to the financial penalty for underpayment
2. Section 19A of the National Minimum Wage Act 1998 (notices of underpayment: financial penalty) is amended as follows—
(a) in subsection (4) for “50%” substitute “100%”;
(b) in subsection (7) for “£5000” substitute “£20,000”.
Transitional provision
3. The amendments made by regulation 2 do not apply in relation to a notice of underpayment in respect of which the sum due to the worker specified in the notice includes a sum for a pay reference period( 3 ) beginning before the day on which these Regulations come into force.
Jenny Willott
Parliamentary Under Secretary of State for Employment Relations and Consumer Affairs
Department for Business, Innovation and Skills
6th March 2014
Section 19A was inserted by section 9(1) of the Employment Act 2008 (c.24) .
Section 1(4) of the National Minimum Wage Act 1998 provides that a ‘pay reference period’ is such period as the Secretary of State may prescribe. ‘Pay reference period’ has the meaning assigned to it by regulation 10 of the National Minimum Wage Regulations 1999 ( S.I. 1999/584 ).