Employers fined over £10 million for minimum wage breaches

Almost 500 UK employers have been fined a total of £10.2 million after failing to pay the National Minimum Wage correctly, according to the latest government list. Following investigations by HMRC, around 42,000 workers have now received back pay totalling £6 million.

The list of employers includes businesses of all sizes and across a wide range of sectors - from retail and hospitality to childcare and manufacturing. Many are well-known household names, showing that even established employers can get caught out by the rules.

The importance of getting it right

Employers found to be underpaying staff not only have to make good the shortfall but also face financial penalties of up to 200% of the arrears (capped at £20,000 per worker), as well as being publicly named. Employers who deliberately fail to pay the minimum wage may face a potentially unlimited fine.

Niall Mackenzie, Chief Executive of Acas, said that failing to pay the correct minimum wage “can result in grievances and potentially legal action, including costly employment tribunals, as well as being named and shamed.”
 
Common causes of underpayment

Failing to pay the minimum wage correctly isn’t necessarily intentional. For instance, a business can get caught out by making deductions or charges (such as for uniforms or office accommodation) that take pay below the legal minimum, or not accounting for unpaid time spent working, such as while training.

A breach can also occur if an employer fails to update pay rates when they change each April. The current rates that have applied since April 2025 are:

• National Living Wage (21 and over): £12.21.
• Ages 18-20: £10.00.
• Under 18 and apprentices: £7.55.

Getting minimum wage payments right not only avoids penalties but also supports staff morale, retention and reputation - all key to running a successful business.

If you need any help with your payroll and minimum wage payments, please get in touch. We would be happy to help you.

See: https://www.gov.uk/government/news/6-million-repaid-to-workers-as-government-cracks-down-on-employers-underpaying-their-staff

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