In an announcement made by British Prime Minister David Cameron on Tuesday, he vowed to increase fines for company owners who choose not to pay the minimum ‘national living wage’ to their workers. The national living wage is projected to increase up to 9 pounds per hour by the end of the decade. However, the current minimum wage is 6.50 pounds an hour, for workers aged more than 20 years, and it is set to increase up to 6.70 pounds in October.
According to Osborne, employers will have to pay a ‘national living wage’ of at least 7.20 pounds to workers aged more than 25 years old from April 2016 onwards. In his remarks to The Times newspaper, Mr. Cameron stated that “the national living wage will only work if it is properly enforced,” adding that “businesses are responsible for making that happen, and today I’m announcing how we will make sure they do.”
An article published by The Times on Tuesday added that Cameron wants to increase fines for non-payment up to two-fold, exposing lawbreaking employers to a penalty up to 200 percent of unpaid wages up to a maximum of 20,000 pounds. In addition to that, the bosses who refuse to pay the fine will be disqualification as company directors for up to 15 years. The newspaper quoted Harper as saying that “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.”
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