Nearly a decade after the introduction of the national minimum wage (NMW), the Government has finally accepted that some unscrupulous employers continue to underpay their workers.

To deal with the problem, it has issued a consultation document which addresses three basic issues:

  • How to ensure that workers who are underpaid the NMW receive fair arrears calculated in such a way that they do not lose out in real terms as a result of that initial underpayment
  • How to ensure that a simple, effective penalty regime is in place to encourage employers to pay the NMW where it is due from the outset
  • How to ensure that an effective enforcement regime is in place for dealing with the minority of employment agencies that do not comply with agency legislation


To download the consultation document, go to:

Closing date for comments and views is 8 August 2007.