All employers in the UK will have to pay the NLW, and should be aware of the implications of choosing not to do so.

On September 1, 2015, the Department for Business, Innovation and Skills announced a package of serious measures to ensure that the NLW is paid. The penalties for non-payment of the NLW and the NMW have doubled. Penalties can be 200 per cent of arrears, although halved if paid by the employer within a 14-day period.

A new team of compliance officers will be set up to investigate the most serious cases of non-payment of the NLW. This team will have power to impose sanctions, including penalties, naming and shaming non-compliant employers, and prosecution.

Company directors could face disqualification for up to 15 years if found guilty of non-compliance. A new Director of Labour Market Enforcement and Exploitation will be set up to oversee enforcement.