Over 500 companies named for not paying minimum wage

London (file photo)

Over 500 employers have been named by the UK 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,” Kevin Hollinrake MP, Department for Business and Trade, said in a press release.

The employers named include major high street brands.

“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,” he said.

Hollinrake highlighted that 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.”

Meanwhile, 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.”

Rice also noted that 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.

“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,” Rice added.

Which employers have been named?

Estee Lauder, Greggs and easyjet are among the well-known employers named by the government for failing to pay workers the national living wage.

Other employers on the list include recruitment company Staffline, which failed to pay more than £5m to nearly 34,000 workers.

Casino and bingo owner the Rank Group was second, underpaying 5,629 workers by £960,000, and Estee Lauder third, with 5,933 employees of the cosmetics giant receiving almost £900,000 less than they were due.

Pub chain Mitchell and Butlers, food giant 2 Sisters Poultry and NHS Highland were also among the top 25 worst offenders.