Monday, January 20, 2025

Government names more than 500 companies who’ve paid below minimum wage

A number of employers in our region are amongst a list of more than 500 employers named by the government for failing to pay the minimum wage.

The 524 employers were found to have failed to pay their workers nearly £16 million in a clear breach of the National Minimum Wage law, leaving more than 172,000 workers out of pocket.

Employers being named today include Sheffield’s Tuffnells Parcels Express which went  into administration last June, 2 Sisters Food Group from Wakefield, Morrisons Produce Ltd from Bradford, Cranswicj Country Foods from Hessle, and other major high street brands, in a clear message from government that no employers are exempt from paying their workers the statutory minimum wage.

The businesses have since paid back what they owe to their staff, and have also faced financial penalties of up to 200% of their underpayment. The investigations by HMRC concluded between 2015 and 2023.

Minister for Enterprise, Markets and Small Business Kevin Hollinrake said: “Employees deserve to get paid properly for the hard work they put in.

“While the majority of businesses already do the right thing and pay their staff what they are owed, today’s announcement sends a message to the minority who aren’t – that there are repercussions to undercutting hard work from their staff.

“Not all minimum wage underpayments are intentional, but the government has been clear that anyone entitled to be paid the minimum wage should receive it, and that enforcement action will be taken against employers who do not pay their staff correctly.”

Independent Commissioner at the Low Pay Commission, Patricia Rice, said: Since its introduction nearly twenty-five years ago, the national minimum wage has played a vital role in protecting the earnings of the lowest-paid workers in the UK.  At a time when the cost-of-living is rising, it is more important than ever that these workers receive the pay to which they are entitled.

“NMW underpayment not only cheats workers of their rightful due, it leaves compliant firms undercut by those who do not abide by the law. By naming the firms responsible for significant underpayment, we raise awareness of the nature and the scale of underpayment and encourage all employers to ensure that they fully comply with the law.”

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