Over 200 employers failed to pay staff minimum wage

Over 200 employers have failed to pay their lowest paid staff the minimum wage.

The 208 employers were found to have failed to pay their workers £1.2m in a clear breach of National Minimum Wage (NMW) law, leaving around 12,000 workers out of pocket.

Companies being named today range from multinational businesses and large high street names to SMEs and sole traders, in a clear message that no employer is exempt from paying their workers the statutory minimum wage.

These businesses have since had to pay back what they owe to staff and also face significant financial penalties of up to 200% of what was owed, which are paid to the government. The investigations by Her Majesty’s Revenue and Customs concluded between 2014 and 2019.

Minister for Labour Markets Paul Scully said: “We want workers to know that we’re on their side and they must be treated fairly by their employers, which is why paying the legal minimum wage should be non-negotiable for businesses.

“Today’s 208 businesses, whatever their size, should know better than to short-change hard-working employees, regardless of whether it was intentional or not. With Christmas fast approaching, it’s more important than ever that cash is not withheld from the pockets of workers. So don’t be a scrooge – pay your staff properly.”

The employers named today previously underpaid workers in the following ways:

• 37% - deductions that reduce minimum wage pay, for example workers out of pocket to comply with the dress code
• 29% - unpaid working time such as mandatory training, trial shifts or travel time
• 16% - failing to pay the correct rate to apprentices
• 11% - not increasing NMW pay in line with government rises, or paying the wrong minimum wage rate, for example paying a 23 year old the 21-22 year old rate.

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