NMWM13180 - Issuing Notices of Underpayment: when to include a penalty on a notice
Relevant legislation
Any arrears from 6 April 2009
All arrears before 6 April 2009
Secretary of State Directions
Suspending a penalty
Issuing a penalty without a notice
Relevant legislation
»Ê¹ÚÌåÓýapp legislation that applies to this page is as follows:
- National Minimum Wage Act 1998, sections 19A & 19B
Any arrears from 6 April 2009
A Notice of Underpayment must always include a penalty (NMWM13220) if the notice shows arrears for any worker in a pay reference period starting on or after 6 April 2009 unless the penalty is not applied, under a direction (NMWM13200) issued by the Secretary of State for Business and Trade.
»Ê¹ÚÌåÓýapp notice must specify the amount of the penalty and show how the penalty has been calculated.
A notice will include a penalty whenever there are arrears for pay reference periods starting on or after 6 April 2009. This applies even when the underpayment associated with those arrears is nil in which case the minimum penalty will apply (NMWM13220).
»Ê¹ÚÌåÓýappre may be occasions where it will be necessary to issue more than one notice of underpayment to the employer, see NMWM13222.
All arrears before 6 April 2009
Do not include a penalty if all the arrears for all the workers named on the notice of underpayment are wholly for pay reference periods starting before 6 April 2009.
Secretary of State directions
»Ê¹ÚÌåÓýapp Secretary of State for Business and Trade (NMWM02020) can issue directions stipulating when a penalty should not be imposed. »Ê¹ÚÌåÓýapp Secretary of State has issued a direction stating that a penalty will not be imposed in certain circumstances (NMWM13200).
Suspending a penalty
In certain circumstances a penalty must be imposed and immediately suspended (NMWM13190).
Issuing a penalty without a notice
A penalty cannot be issued separately from a Notice of Underpayment.