Employment Law Update (February 2009)
Wages - Bigger penalties on the way for underpayments
Wages have long had special protection under the law,
particularly with the aim of preventing exploitation of low-paid
workers. From April, the protection will be strengthened in
two ways:
- Arrears of the National Minimum Wage can be ordered to be paid
at the current rate in force;
- Where any wages are not paid or have been underpaid, employees
can claim for consequential losses in an employment tribunal.
Implications for employers
Both measures mean employees will be able to claim compensation
in excess of any underpayment due. Where employees are
claiming for consequential losses, these might include bank charges
incurred if an employee goes overdrawn as a result of non-payment
or underpayment of wages.