British Airways and Lidl are amongst 518 employers who have been named and shamed for failing to pay their employees at least the National Minimum Wage and National Living Wage.
National Minimum Wage: Named And Shamed
518 employers have been named and shamed by the Department for Business and Trade (DBT) for a variety of breaches of their legal obligation to pay their employees at least the National Minimum Wage and National Living Wage.
The latest list of those who failed to pay the National Minimum Wage and the National Living Wage includes many very well known employers, including British Airways and Lidl.
Approximately 60,000 workers were found to have been underpaid almost £7.4 million by the 518 employers named and shamed, with those employers named facing financial penalties of up to 200% of their underpayment.
The Top 10
The top 10 of the 518 employers named and shamed on the list of those who failed to pay the National Minimum Wage and the National Living Wage, were as follows:-
- Capita Business Services Ltd – 5,543 employees were underpaid a total £1,154,461.97
- Pizzaexpress (Restaurants) Limited – owed £760,701.61 in back pay to 8,470 workers
- Virtual Marketing Services (Gibraltar) Ltd – 41 workers were underpaid a total of £478,282.71
- L. Rowland & Company (Retail) Limited – £307,342.87 was owed in back pay to 2,293 workers
- Templar Corporation Limited – 26 workers were underpaid a total of £298,143.12
- Lidl Great Britain Limited – £286,437.18 was owed as back pay to 3,423 workers
- British Airways PLC – 2,165 workers were underpaid a total £231,276.10
- Scottish Midland Co-operative Society Limited – £186,883.56 was owed in back pay to 1,795 workers
- Interserve (Facilities Management) Ltd – 2,297 workers were underpaid a total of £177,268.08
- Prezzo Limited – £163,702.67 was owed in back pay to 2,550 workers
Increased Regularity
The Government confirmed back on the 10th October 2024 that it intends to name and shame those employers who fail to pay at least the National Living Wage and National Minimum Wage more regularly. It stated: "The National Minimum Wage Naming Scheme remains a key deterrent to employers breaking minimum wage law. The Naming Scheme highlights non-compliant employers by publicly exposing their breaches and promoting their future compliance to deter other businesses from underpaying the minimum wage. The naming scheme also aims to increase compliance by publishing an educational bulletin tailored to the areas of non-compliance for that particular round."
First Since February 2024
Nevertheless, the release of the latest list represents the first round of naming and shaming since February 2024 (under the previous Government) when 524 employers were named and shamed.
Some Breaches Go Back Many Years
Some of the incidents of underpayment, however, could in no way be classified as recent, as many date back many years. The PizzaExpress underpayments, for instance, date back to 2012-2018.
Ensuring Compliance: Steps Employers Should Take
To avoid breaches in relation to the National Minimum Wage, employers should adopt a proactive approach to compliance. Firstly, it is essential for businesses to stay updated on the latest changes in employment law and the National Minimum Wage. Regular training sessions for HR and payroll departments can ensure that all team members are well-informed about their legal obligations.
Secondly, implement robust payroll systems that automatically flag discrepancies or potential underpayments. This can help identify issues before they escalate. These systems should be regularly audited to ensure accuracy and compliance. Employers should also consider conducting periodic reviews of employee wages, especially when there are changes in roles or working hours.
Thirdly, foster an organisational culture that prioritises fair treatment and transparency. Encouraging open communication channels where employees can raise concerns about their wages without fear of retaliation will promote trust and accountability within the company.
Finally, seek external advice from legal experts or consultants who specialise in employment law where clarification is required. This provide additional assurance that all practices are compliant with current regulations.
