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139 employers named and shamed for failing to pay minimum wage

Makbool Javaid, Partner - Simons Muirhead & Burton

Investigated between 2016 and 2018, 139 named companies failed to pay £6.7 million to over 95,000 workers in total, which is a breach of employment law. The offending companies range in size from small businesses to large multinationals who employ thousands of people across the UK. This is the first time the Government has named and shamed companies for failing to pay National Minimum Wage since 2018, following reforms to the process to ensure only the worst offenders are targeted. One of the main causes of minimum wage breaches was low-paid employees being made to cover work costs, which would eat into their pay packet, such as paying for uniform, training or parking fees. Employers who pay workers less than the minimum wage have to pay back arrears of wages to the worker at current minimum wage rates. They also face hefty financial penalties of up to 200% of arrears – capped at £10,000 per worker. Those named include: Tesco stores Limited who failed to pay £5,096,946.13 to 78,199 workers and Pizza Hut (U.K.) Limited who failed to pay £845,936.41 to 10,980 workers.

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