From 1 October the National Minimum Wage is set to increase from £5.35 to £5.52 for all those aged 22 and over. Failing to increase your employee’s wages to bring them in line with the new minimum wage could leave you facing a tribunal claim and/or a criminal conviction. The government is now referring to employers who fail to meet the minimum wage as “rogues” and has promised to crackdown on those who fail to uphold the law by dedicating more enforcement officers to monitor and target employers. National Minimum Wage legislation contains six criminal offences, each carrying a £5000 fine, one of which is preventing government enforcement officers from inspecting company records in order to find out how much employees are paid.

Recently the owner of the London based Rascals Day Nursery, Teresa Aguda, has become the first person to be prosecuted for obstructing government enforcement officers. Aguda has suffered damage to her reputation, a criminal record and was forced to pay a total of £3,000. According to the judge, Aguda, ‘demonstrated a clear and deliberate intent to obstruct officers and this was a scandalous breach of the National Minimum Wage legislation.’ Andy Millican, criminal investigation team leader added:

"This prosecution sends a clear message to employers that [the government] will actively pursue those we suspect of flouting National Minimum Wage law. If employers obstruct us and refuse to comply with the law they could receive a fine and a criminal record."

Therefore the bottom line is, make sure that you are up to date with the National Minimum Wage laws or else face prosecution as well as a tribunal claim from any effected employees. The time for rogue employers is coming to an end; more fool those who continue to act independently of the law.

Our service will keep you up to date with the changes in the minimum wage level so that you always pay your employees the right amount. Our General employment agreement and General purpose offer letter automatically calculate whether the wage level you have entered is less than the minimum and will warn you if this is the case. The document notes also contain information on employing agricultural workers, who have different minimum wage rates.