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7) Changes to enforcement regime for National Minimum Wage

Amongst other detailed changes, there will be an introduction of penalties of between £100 and £5000 as a consequence of failure to pay the National Minimum Wage. New provisions will effectively remove one stage from the current regime by including a financial penalty within the original notice of underpayment. Notices of underpayment will require the employer to pay a financial penalty to the Secretary of State within 28 days of service. If the employer complies with the notice within 14 days of its service, the financial penalty will be reduced by 50%.