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This article was published on January 22nd, 2014
New legislation is due to come into effect in February 2014 which will introduce an increased fine on employers for each employee paid less than the minimum wage.
Originally £5,000, the maximum fine limit will be increased to £20,000 which is hoped will serve as a real deterrent to those companies who ignore minimum wage legislation.
HM Revenue and Customs figures revealed that under the current legislation they identified more than 26,000 workers being underpaid and have received £4 million following HMRC investigations.
According to HMRC data, 708 employers have been fined as a result of 1,693 complaints being made in 2012/2013 with an average of £300 in back pay given to each affected worker. Many of the cases involved illegal use of interns, unpaid extra hours and workers being forced to buy company clothes as uniform.
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