Hundreds of employers handed penalties for illegally underpaying workers
By Department for Business and Trade ·
- employers told to repay over £7.3 million in wages owed to workers to aid the cost of living for some of the lowest earners
- nearly 400 employers, including well-known brands, face consequences for failing to pay the minimum wage through £12.6 million in penalties
- around 60,000 workers found to have been underpaid as employers who break the rules are held to account
employers told to repay over £7.3 million in wages owed to workers to aid the cost of living for some of the lowest earners
nearly 400 employers, including well-known brands, face consequences for failing to pay the minimum wage through £12.6 million in penalties
around 60,000 workers found to have been underpaid as employers who break the rules are held to account
Thousands of hard-working Brits who have been denied over £7.3 million in pay by their employers have been directly repaid as part of latest Government crackdown on those who fail to pay the minimum wage.
The findings come alongside enforcement action against businesses failing to pay their staff the legal National Minimum Wage, making clear that workers won’t be made to pay for the mistakes or negligence of those they work for, regardless of how big or well-known they are.
New figures show a total of around £12.6 million in penalties have been issued to 389 employers, with these fines coming on top of the repaid wages.
Business Secretary Peter Kyle said:
The vast majority of businesses in this country do the right thing by paying their staff properly and playing by the rules. It’s not fair on them when others are able to get ahead by not paying the wages their workers are owed. A good employer doesn’t build their business on the back of unpaid wages, and I look forward to working with the new Fair Work Agency to ensure its powers are used to crack down on those who think the rules don’t apply to them.
The vast majority of businesses in this country do the right thing by paying their staff properly and playing by the rules. It’s not fair on them when others are able to get ahead by not paying the wages their workers are owed.
A good employer doesn’t build their business on the back of unpaid wages, and I look forward to working with the new Fair Work Agency to ensure its powers are used to crack down on those who think the rules don’t apply to them.
Data published today, available in the background section of this press release, reveals that businesses across sectors including social care, sports and retail, were among those failing to comply with minimum wage laws.
This is the first ‘naming round’ since the Chancellor’s Budget commitment to publish more frequently. This puts more pressure on employers to keep their payroll up to date and boosts workers’ confidence that when they’re treated poorly by their boss, swift justice will follow.
Employment Rights Minister Kate Dearden said:
Nobody should finish a week’s work and find they’ve been paid less than they’ve earned. I believe in a fair day’s pay for a fair day’s work. That’s why we’re cracking down on employers who underpay. We’re making sure workers get the hard earned pay they deserve. I encourage every employer to check their payroll to ensure they don’t get caught out.
Nobody should finish a week’s work and find they’ve been paid less than they’ve earned. I believe in a fair day’s pay for a fair day’s work.
That’s why we’re cracking down on employers who underpay. We’re making sure workers get the hard earned pay they deserve.
I encourage every employer to check their payroll to ensure they don’t get caught out.
This is also the final naming round before the Fair Work Agency begins its work on 7 April 2026, a brand-new enforcement body formed through the recently passed Employment Rights Act to bring workers’ rights enforcement under one roof for the first time.
Offering a single, streamlined place where employers will be able to get guidance on how to follow the rules, the Fair Work Agency will have more muscle to ensure that workers across the country get every penny they are owed.
This not only includes enforcing payment of the minimum wage but is soon set to tackle those who break the law by denying holiday and sick pay.
Today’s announcement also comes ahead of further increases to the minimum wage, which will see the lowest earners over 21 years old receive an annual pay boost of £900 for those working full time. Coming alongside the decision to extend Statutory Sick Pay to 3 million more workers, freeze the 5p fuel duty cut and cap energy prices so that households save £117 on their bills next month, this government is demonstrating its commitment to support people across the UK with the cost of living.
Background:
- if workers suspect they are being underpaid, they can the Check your pay website to find out more about what they can do
- workers visit the Acas website for free, impartial and confidential advice or complain to HM Revenue and Customs (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:
if workers suspect they are being underpaid, they can the Check your pay website to find out more about what they can do
workers visit the Acas website for free, impartial and confidential advice or complain to HM Revenue and Customs (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:
- Educational Bulletin - NMW Naming Round 23 (MS Word Document, 112 KB)
- Naming Round 23 – Full list of employers and arrears – Full list - NMW Naming Round 23 (ODS, 69.3 KB)
Educational Bulletin - NMW Naming Round 23 (MS Word Document, 112 KB)
Naming Round 23 – Full list of employers and arrears – Full list - NMW Naming Round 23 (ODS, 69.3 KB)
The list of employers being named for failing to pay the National Minimum Wage is provided here:
Originally published by GOV.UK News & Communications