Cameron announces fines for companies failing to pay minimum wage
UK Prime Minister David Cameron has announced that tough fines will be imposed on company bosses who fail to pay the country's minimum wage, tipped to rise to £9 an hour.
The current minimum wage for those over 21 is £6.50 pounds an hour and will be raised to £6.70 pounds in October. Chancellor George Osborne said that from April 2016 those aged over 25 will see their “national living wage” raised to £7.20 an hour.
The minimum wage will be increased to £9 by 2020, with the UK having one of the most generous pay guarantees in the world.
Businesses that fail to pay their staff these amounts will face a penalty of 200% of the unpaid amount up to £20,000.
In addition, bosses who fail to make the payment will face disqualification as company directors for up to 15 years.
underpay your staff, and you will pay the price
"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," Cameron said in an article for The Times newspaper that was published on Tuesday.
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