Employers underpaying their staff face unlimited fines as part of a crackdown on those exploiting workers under the government's Employment Act which comes into action in April 2009.
The Employment Act aims to introduce a fairer way of dealing with national minimum wage payments so workers do not lose out.
Along with the legislation business secretary Peter Mandelson has launched the It's Your Call campaign to raise awareness of the increase in the national minimum wage and help workers complain if they are underpaid.
Lord Mandelson talked about the need to make sure workers are treated fairly, saying: "Of course, most businesses treat staff fairly, but the small number who cheat their workers are flouting the law and undercutting honest competitors.
"Our changes will make sure everyone caught not paying their workers properly faces a stiff penalty - we are determined to ensure workers are paid fairly."
More than one million people across the UK benefit from annual rises in the national minimum wage.
On October 1st, rates rose to £5.73 for workers aged 22 and over; £4.77 for 18-21 year olds and £3.53 for those aged 16 and 17.
The It's Your Call roadshow, launched in Downing Street this morning, will visit over 28 towns and cities in a three-month tour of the UK.
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