Over 200 employers including WH Smith and Marks & Spencer have been named by government for failing to pay their lowest paid staff the minimum wage.
The 202 employers – who’ve now paid employees the balance – were found to have failed to pay their workers almost £5 million in breach of National Minimum Wage law, leaving around 63,000 workers out of pocket.
Companies named include major high street brands, small businesses, and sole traders, in a clear message from government that no employer is exempt from paying their workers the statutory minimum wage.
Minister for Enterprise, Markets and Small Business Kevin Hollinrake said: “Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff.
“Most businesses do the right thing and look after their employees, but we’re sending a clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences.”
The businesses named have since paid back what they owe to their staff and have also faced financial penalties. The investigations by His Majesty’s Revenue and Customs concluded between 2017 and 2019.
The employers named today previously underpaid workers in the following ways:
- 39% of employers deducted pay from workers’ wages.
- 39% of employers failed to pay workers correctly for their working time.
- 21% of employers paid the incorrect apprenticeship rate.
Whilst not all minimum wage underpayments are intentional, there is no excuse for underpaying workers, says Bryan Sanderson, Chair of the Low Pay Commission: “Guidance for employers on pay is available on GOV.UK, and today the government has published additional advice about breaches and the steps employers should take to make sure they pay their workers correctly.
“The minimum wage acts as a guarantee to ensure all workers without exception receive a decent minimum standard of pay. Where employers break the law, they not only do a disservice to their staff but also undermine fair competition between businesses.
“Regular naming rounds should be a useful tool in raising awareness of underpayment and helping to protect minimum wage workers.”
The full list of companies and the amounts by which they underpaid employees can be found here.
