UK Gov Names Over 500 Firms for Underpaying Workers

  • 524 businesses have been named for failing to pay the minimum wage
  • Employers ordered to repay workers nearly £16 million, plus an additional financial penalty, after breaches left over 172,000 workers out of pocket.
  • Comes as the National Living Wage is set to increase by 9.8% to £11.44 an hour on 1st April, as announced in November's Autumn statement.

Over 500 employers are today [Tuesday 20 February] being named by government for failing to pay the minimum wage.

The 524 employers were found to have failed to pay their workers nearly £16 million in a clear breach of the National Minimum Wage (NMW) law, leaving over 172,000 workers out of pocket.

Employers being named today include major high street brands, in a clear message from government that no employers are exempt from paying their workers the statutory minimum wage.

The businesses named in today's list have since paid back what they owe to their staff and have also faced financial penalties of up to 200% of their underpayment. The investigations by His Majesty's Revenue and Customs (HMRC) concluded between 2015 and 2023.

Minister for Enterprise, Markets and Small Business Kevin Hollinrake said:

Employees deserve to get paid properly for the hard work they put in.

While the majority of businesses already do the right thing and pay their staff what they are owed, today's announcement sends a message to the minority who aren't - that there are repercussions to undercutting hard work from their staff.

Whilst not all minimum wage underpayments are intentional, the government has been clear that anyone entitled to be paid the minimum wage should receive it, and that enforcement action will be taken against employers who do not pay their staff correctly.

Independent Commissioner at the Low Pay Commission, Patricia Rice, said:

Since its introduction nearly twenty-five years ago, the national minimum wage has played a vital role in protecting the earnings of the lowest-paid workers in the UK. At a time when the cost-of-living is rising, it is more important than ever that these workers receive the pay to which they are entitled.

NMW underpayment not only cheats workers of their rightful due, it leaves compliant firms undercut by those who do not abide by the law. By naming the firms responsible for significant underpayment, we raise awareness of the nature and the scale of underpayment and encourage all employers to ensure that they fully comply with the law.

The government has been clear that anyone entitled to be paid the minimum wage should receive it, and that robust enforcement action will be taken against employers who do not pay their staff correctly.

We are committed to educating employers and have released an educational bulletin today to increase awareness of National Minimum Wage legislation and inform companies on how to make sure they're paying workers correctly.

The government is determined to ensure workers are paid for their hard work, having announced the largest increase in the National Living Wage in November's Autumn statement, which will take effect from 1st April 2024.

This year marks 25 years since the introduction of the National Minimum Wage and this year's increase will see 16-17-year-olds on the minimum wage receive a rise of 21.2%. This year, the government has also met a manifesto commitment of the National Living Wage equalling two-thirds of median earnings by 2024, ending low hourly pay for those aged 21 and over.

Notes:

  • If workers suspect they are being underpaid, they can visit gov.uk/checkyourpay to find out more about what they can do.
  • Workers can also call the Acas helpline on 0300 123 1100 or visit their website for free, impartial and confidential advice or complain to HMRC at Pay and work rights helpline and complaints
  • The minimum wage law applies to all parts of the UK.
  • Employers should always carry out the necessary checks - see the guidance: Calculating the Minimum Wage
  • HMRC consider all complaints from workers, so workers are being reminded to check their pay with advice available through the Check your pay website
  • National Living Wage and National Minimum wage rates:
2023 rate2024 rate
National Living Wage 21 and over
(previously 23 and over)£10.42£11.44
18 to 20£7.49£8.60
Under 18£5.28£6.40
Apprentice£5.28£6.40
Accommodation Offset£9.10£9.99

List of employers named in Round 20:

This is the full list of employers being named for failing to pay the National Minimum Wage,

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