Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Companies face tough fines over living wage

David Cameron has pledged to impose tough fines for company bosses who fail to pay the national living wage, which will reach £9 an hour by 2020.

Employers face a penalty of 200% of unpaid wages up to a maximum of £20,000, according to the The Times.

Bosses who fail to pay will also face disqualification as company directors for up to 15 years.

The living wage will come into force in April 2016, starting at £7.20 to over-25s. The current minimum wage for workers aged 21 and over is £6.50 an hour and will rise to £6.70 in October.

“The national living wage will only work if it is properly enforced,” Cameron told the newspaper. “Businesses are responsible for making that happen, and today I’m announcing how we will make sure they do. To unscrupulous employers who think they can get labour on the cheap, the message is clear: underpay your staff, and you will pay the price.”

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.