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Govt names over 500 employers for not paying minimum wage

by Muna Abdi
21/02/2024
pay rise, wages rising
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The government has named 524 businesses for failing to meet minimum wage requirements, resulting in nearly £16 million in unpaid wages for over 172,000 workers.

The companies have paid back the unpaid salaries and have been hit with fines equal to up to 200% of the underpayment. HM Revenue and Customs conducted investigations spanning from 2015 to 2023.

Included on the list are Estee Lauder Cosmetics who failed to pay £894,980.43 to 5,933 workers, Easyjet Airline who failed to pay £338,876.46 to 3,898 workers and Currys Group who failed to pay £122,801.34 to 4,109 workers.

The government highlights that the minimum wage should be paid to all eligible workers and that firms that fail to comply with this requirement will face severe penalties. 

The National Living Wage will increase by the greatest amount on April 1st, 2024, demonstrating the government’s commitment to equitable pay.

The National Living Wage will match two-thirds of median wages by 2024, ending low hourly pay for anyone 21 and older.

BDO Employer Tax Partner Caroline Harwood says: “It’s always a bit of a shock to see so many well-known names appearing on HMRC’s list of employers who have been found to be in breach of national minimum wage rules.

“HMRC’s list doesn’t differentiate between breaches that are deliberate and those which are accidental. Many employers on the list may well have acted with the best intentions but made inadvertent mistakes when calculating workers’ pay. 

“Common areas that can lead to underpayments are things like deductions from pay linked to salary sacrifice schemes, uniforms or other voluntary deductions. Employers can also fall foul by failing to have robust time monitoring processes in place.

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