Datum RPO Blog

£6 Million Wake-Up Call: Why Underpaying Staff Just Got a Whole Lot Riskier

Written by Datum RPO | 20 Oct 2025

The UK Government has sent a powerful message to employers across the nation: pay your people fairly — or pay the price.

In a recent crackdown, nearly 500 UK employers have been publicly named and shamed for underpaying around 42,000 workers, resulting in £6 million being repaid in missing wages. The announcement, detailed in the official Government report “£6 million repaid to workers as Government cracks down on employers underpaying their staff”, reinforces one simple truth — fair pay isn’t optional.

The Real Cost of Cutting Corners

This isn’t just about numbers on a payslip. It’s about trust, transparency, and the integrity of the UK’s workforce.

Employers found guilty of failing to pay the National Minimum Wage now face not only fines exceeding £10 million, but also serious reputational damage.

From retailers to childcare providers, the list spans every corner of British industry — proving that no business is too big or too small to be held accountable.

As Labour Market Enforcement Director Margaret Beels put it, this action aims to “protect responsible employers” from being undercut by those who flout the rules. It’s a reminder that compliance isn’t just a legal duty — it’s a competitive advantage.

A New Era of Accountability

This crackdown forms part of the Government’s wider “Plan to Make Work Pay” — described as the biggest upgrade to workers’ rights in a generation. And the momentum is only growing.

From April 2026, a new Fair Work Agency will take charge of enforcing wage and employment law, with enhanced powers to ensure that every worker gets what they’re owed — from fair pay to proper holiday and sick entitlements.

The message is clear: employers must get their house in order now before stricter oversight and higher penalties come into play.

Why Compliance Shouldn’t Be a Headache

Let’s be honest — keeping up with evolving employment laws, wage thresholds, and payroll compliance can be a minefield. But failing to do so can cost far more than just back pay.

That’s where Datum RPO comes in.

How Datum RPO Helps You Stay Compliant and Cost-Efficient

At Datum RPO, we help organisations take control of their temporary labour — ensuring every worker is managed compliantly, efficiently, and cost-effectively.

Our managed service solutions give you full visibility over your contingent workforce, helping you reduce agency spend, eliminate hidden costs, and stay on the right side of employment legislation.

From supplier audits and compliance checks to consolidated invoicing and real-time reporting, Datum RPO streamlines your workforce management so you can focus on what really matters — driving productivity, protecting your reputation, and improving your bottom line.

With Datum RPO, compliance and cost control go hand in hand.