This Section, and the Sections that follow, allow the Secretary of State to issue notices of underpayments to employers where they have underpaid workers in breach of certain statutory pay provisions. The Notice of Underpayments will require the employers to pay any outstanding arrears to their workers and also pay a penalty to the Secretary of State.
	Subsection (1) sets out when the Secretary of State may give a notice of underpayment. They may issue such a notice where it appears to them that on any day (the ‘relevant day’) a sum payable under or by virtue of a statutory pay provision was due from the liable party to an individual and any period for payment of that sum has ended without the sum having been paid to the underpaid individual.
	Subsection (2) defines a notice of underpayment as a notice given under this Section that requires the liable party to pay the required sum (which is defined in the next Section) to an underpaid individual within 28 days of the notice being issued.
	Subsection (3) makes additional provision about the Secretary of State’s power to give a notice of underpayment under subsection (1). The issue of Notice of Underpayments by the Secretary of State is subject to subsection (6) and Section 105.
	Subsection (4) sets out that the Secretary of State may give a notice of underpayment to a person in respect of a sum that was due on the relevant day, regardless of whether the sum remains due at the time the notice is given.
	Subsection (5) states that where all or part of the sum is paid before the giving of the notice, that part of the requirement imposed by the notice is, to that extent, treated as met.
	Subsection (6) states that a notice of underpayment cannot be given by the Secretary of State if proceedings have already been brought via Section 116, and these proceedings have not been finally determined or discontinued.
	Subsection (7) defines ‘statutory pay provision’ as a provision of relevant labour market legislation that confers a right or entitlement to the payment of any sum, or prohibits or restricts the withholding of payment of any sum, to an individual.
Part 5: Enforcement of Labour Market Legislation Notice of Underpayment Section 103 – Power to give notice of underpayment