Nearly 400 employers across the UK have been publicly named after failing to pay the legal minimum wage, according to the government. The crackdown revealed that around 60,000 workers were underpaid, collectively losing out on £7.3 million in wages.
The findings come as part of wider enforcement action targeting businesses that do not comply with National Minimum Wage laws. Alongside being required to repay the missing £7.3 million, these employers have also been hit with additional penalties totalling £12.6 million.
The Department for Trade and Industry said the action sends a clear message: workers should not bear the cost of employer mistakes or negligence, regardless of a company’s size or reputation.
The announcement also comes just ahead of planned increases to the minimum wage. These changes will give full-time workers aged 21 and over a yearly pay boost of around £900.
Business Secretary Peter Kyle emphasised that most businesses follow the rules, but those that don’t create unfair competition:
“The vast majority of businesses in this country do the right thing by paying their staff properly and playing by the rules. It’s not fair on them when others are able to get ahead by not paying the wages their workers are owed.
“A good employer doesn’t build their business on the back of unpaid wages, and I look forward to working with the new Fair Work Agency to ensure its powers are used to crack down on those who think the rules don’t apply to them.”
