Record number of employers named for underpaying workers

Published: 25 February 2017

Category: Legal News

More than 350 employers have been named and shamed for failing to pay the national minimum wage rates.

It’s the largest list of its kind so far produced by the Department for Business, Energy and Industrial Strategy and names 360 businesses that underpaid 15,520 workers a total of £995,233. Employers in the hairdressing, hospitality and retail sectors were the most prolific offenders.

All of the money owed to their employees has to be paid back to them.

For the first time, the naming list includes employers who failed to pay eligible workers at least the new National Living Wage rate, which is currently £7.20 per hour for workers aged 25 and over. It rises to £7.50 in April.

Business Minister Margot James said: “Every worker in the UK is entitled to at least the national minimum or living wage and this government will ensure they get it.

“That is why we have named and shamed more than 350 employers who failed to pay the legal minimum, sending the clear message to employers that minimum wage abuses will not go unpunished.”

Excuses for underpaying workers included using tips to top up pay, docking workers’ wages to pay for their Christmas party and making staff pay for their own uniforms out of their salary.

Please contact Matthew Sigsworth in our Dispute Resolution Team if you would like more information about the issues raised in this article or any aspect of employment law.