National Minimum Wage Act 1998

[F1 19B Suspension of financial penalty U.K.

(1) This section applies in any case where it appears to the officer serving a notice of underpayment which imposes a requirement to pay a financial penalty that—

(a) relevant proceedings have been instituted; or

(b) relevant proceedings may be instituted.

(2) In this section “relevant proceedings” means proceedings against the employer for an offence under section 31(1) below in relation to a failure to remunerate any worker to whom the notice relates for any pay reference period specified under section 19(4)(b) above in relation to that worker.

(3) The notice of underpayment may contain provision suspending the requirement to pay the financial penalty payable under the notice until a notice terminating the suspension is served on the employer.

(4) An officer acting for the purposes of this Act may serve on the employer a notice terminating the suspension (“a penalty activation notice”) if it appears to the officer—

(a) in a case referred to in subsection (1)(a) above, that relevant proceedings have concluded without the employer having been convicted of an offence under section 31(1) below, or

(b) in a case referred to in subsection (1)(b) above—

(i) that relevant proceedings will not be instituted; or

(ii) that relevant proceedings have been concluded without the employer having been convicted of an offence under section 31(1) below.

(5) Where a penalty activation notice is served, the requirement to pay the financial penalty has effect as if the notice of underpayment had been served on the day on which the penalty activation notice was served.

(6) An officer acting for the purposes of this Act must serve on the employer a notice withdrawing the requirement to pay the financial penalty if it appears to the officer that, pursuant to relevant proceedings, the employer has been convicted of an offence under section 31(1) below.]

Textual Amendments

F1 Ss. 19-19H substituted for ss.19-22F (6.4.2009) by Employment Act 2008 (c. 24), ss. 9(1), 22(1)(a) (with s. 9(7)); S.I. 2009/603, art. 2 (with art. 3, Sch.)