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

The list of employers spans businesses of all sizes and sectors, including retail, hospitality, childcare, and manufacturing. Several are well-known household names, demonstrating that even established organisations can inadvertently breach the rules.

The Importance of Compliance

Employers who underpay staff must repay the shortfall and may face financial penalties of up to 200% of the arrears (capped at £20,000 per worker), in addition to being publicly named. Those who deliberately fail to comply with minimum wage rules could face an unlimited fine.

Niall Mackenzie, Chief Executive of Acas, warned 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 Reasons for Underpayment

Underpayment is not always intentional. Employers can unintentionally breach the rules by:

  • Making deductions or charges (for example, for uniforms or accommodation) that reduce pay below the legal minimum.

  • Not including unpaid work, such as training time, in calculations.

  • Failing to update pay rates when they change each April.

The current rates, which 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

Ensuring minimum wage compliance not only avoids financial penalties but also supports staff morale, retention, and reputation — all essential for running a successful business.

If you require assistance with payroll or minimum wage compliance, please get in touch. Our team would be happy to help.

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