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Government Names and Shames 208 Companies for Failing to Pay Staff Minimum Wage

10 December 2021

The Government has announced a list of 208 employers failing to pay their lowest paid staff the minimum wage.

The 208 organisations named and shamed were found to have failed to pay their workers £1.2 million in a clear breach of National Minimum Wage (NMW) law, leaving around 12,000 workers out of pocket.

The employers in question are from various industries such as retail - House of Fraser, Recruitment- Hays, Footwear- Clarks and multinationals such as Nike. Schools, nurseries, and healthcare facilities are also included on the list, as well as SMEs and sole traders. The UK Government has made it clear that no employer is exempt from paying their workers the statutory minimum wage.

All the businesses on the list have since had to pay back what they owe to staff and face significant financial penalties of up to 200% of what was owed, which are paid to the government. The investigations by Her Majesty’s Revenue and Customs concluded between 2014 and 2019.

Minister for Labour Markets Paul Scully said:

“With Christmas fast approaching, it’s more important than ever that cash is not withheld from the pockets of workers. So, don’t be a scrooge – pay your staff properly.”

It’s important to note that many of the employers named and shamed have previously underpaid workers in the following ways:

● 37% - deductions that reduce minimum wage pay, for example workers out of pocket to comply with the dress code
● 29% - unpaid working time such as mandatory training, trial shifts or travel time
● 16% - failing to pay the correct rate to apprentices
● 11% - not increasing NMW pay in line with government rises, or paying the wrong minimum wage rate, for example paying a 23-year-old the 21–22-year-old rate

Read More: https://www.gov.uk/government/news/over-200-employers-called-out-for-falling-short-of-paying-staff-the-minimum-wage

What can you do if you are concerned about your recruitment agencies not paying the national minimum wage?

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Datum RPO can help you to manage your agency providers, ensuring that the workers they provide are legally compliant, as well as deliver significant cost savings.


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