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National Minimum Wage Act 1998
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[F119ANotices of underpayment: financial penaltyU.K.
(1)A notice of underpayment must, subject to this section, require the employer to pay a financial penalty specified in the notice to the Secretary of State within the 28-day period.
(2)The Secretary of State may by directions specify circumstances in which a notice of underpayment is not to impose a requirement to pay a financial penalty.
(3)Directions under subsection (2) may be amended or revoked by further such directions.
(4)The amount of any financial penalty is, subject as follows, to be [F2100%] of the total of the amounts referred to in subsection (5) below.
(5)Those amounts are the amounts specified under section 19(4)(c) above for all workers to whom the notice relates in respect of pay reference periods specified under section 19(4)(b) above which commence after the coming into force of this section.
(6)If a financial penalty as calculated under subsection (4) above would be less than £100, the financial penalty specified in the notice shall be that amount.
(7)If a financial penalty as calculated under subsection (4) above would be more than [F3£20,000,] the financial penalty specified in the notice shall be that amount.
(8)The Secretary of State may by regulations—
(a)amend subsection (4) above so as to substitute a different percentage for the percentage at any time specified there;
(b)amend subsection (6) or (7) above so as to substitute a different amount for the amount at any time specified there.
(9)A notice of underpayment must, in addition to specifying the amount of any financial penalty, state how that amount was calculated.
(10)In a case where a notice of underpayment imposes a requirement to pay a financial penalty, if the employer on whom the notice is served, within the period of 14 days beginning with the day on which the notice was served—
(a)pays the amount required under section 19(2) above, and
(b)pays at least half the financial penalty,
he shall be regarded as having paid the financial penalty.
(11)A financial penalty paid to the Secretary of State pursuant to this section shall be paid by the Secretary of State into the Consolidated Fund.]
Textual Amendments
F1Ss. 19-19H substituted for ss.19-22F (6.4.2009) by Employment Act 2008 (c. 24), ss. 9(1), 22(1)(a) (with s. 9(7)); S.I. 2009/603, art. 2 (with art. 3, Sch.)
F2Word in s. 19A(4) substituted (7.3.2014) by The National Minimum Wage (Variation of Financial Penalty) Regulations 2014 (S.I. 2014/547), regs. 1(2), 2(a) (with reg. 3)
F3Sum in s. 19A(7) substituted (7.3.2014) by The National Minimum Wage (Variation of Financial Penalty) Regulations 2014 (S.I. 2014/547), regs. 1(2), 2(b) (with reg. 3)
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