Over 500 companies named for not paying minimum wage
The Government has recently named over 500 employers who are 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 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 the 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.
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.
Committed to educating employers the government has released an educational bulletin 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.
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