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Employers Named for Underpaying Thousands of Minimum Wage Worker
March 9, 2018
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The government has named and shamed nearly 180 employers for underpaying more than 9,000 minimum wage workers by £1.1 million.

As well as recovering backpay for 9,200 workers, the government also fined the employers a total of £1.3 million in penalties for breaking national minimum wage laws. The most prolific offending sectors in this round were retailers, hospitality businesses and hairdressers.

It comes ahead of the next rate rise on 1 April, when the National Living Wage will go up from £7.50 to £7.83 per hour. Apprentices under the age of 19 and those in the first year of their apprenticeship will benefit from a record 5.7% rise.

Later this month the Department for Business, Energy and Industrial Strategy (BEIS) will launch a campaign to raise awareness of the new rates and encourage workers to speak to their employer if they think they are being underpaid.

Since 2013 the scheme has identified more than £9 million in back pay for around 67,000 workers, with more than 1,700 employers fined a total of £6.3 million. The government has also committed £25.3 million for minimum wage enforcement in 2017 to 2018.

Employers who pay workers less than the minimum wage not only have to pay back arrears of wages to the worker at current minimum wage rates but also face financial penalties of up to 200% of arrears, capped at £20,000 per worker.


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