Small businesses that do not pay their staff minimum wage could face fines of up to £20,000.
Previously, if employers were not paying the minimum wage to their employers, they faced a maximum fine of £5,000 plus a financial penalty of 50% of the total underpayment. Under new rules, this penalty would increase to 100% of the underpayment and the fine would increase to £20,000.
The purpose of this is because the Government want to stop people getting paid less than the national minimum wage. By increasing the penalty, it will help discourage employers who try to pay below the wage threshold.