National Minimum Wage: 658 Employers Named for Underpaying Workers

By Samantha Tanney, Senior Lawyer

The Government has named 658 employers for failing to pay the National Minimum Wage (NMW), with around £4 million in unpaid wages recovered for more than 27,000 workers and £7 million in financial penalties issued. The announcement, made by the Department for Business, Innovation, Science and Trade and the Fair Work Agency, forms part of the Government's commitment to increase enforcement activity and publish naming rounds more regularly in an effort to deter unlawful pay practices. Since the scheme was introduced in 2011, more than £66 million has been repaid to over 650,000 workers, with penalties exceeding £100 million. 

The latest naming round is also the first since the launch of the Fair Work Agency in April 2026. Established under the Employment Rights Act, the new enforcement body brings together workers' rights enforcement functions under a single organisation. Ministers said the agency will not only enforce minimum wage compliance but will also take action against employers who fail to provide workers with their statutory entitlements, including holiday pay and sick pay. 

Accompanying guidance published by the Government highlights that underpayment is often the result of employers misunderstanding or incorrectly applying minimum wage rules rather than deliberate wage theft. However, the scale of non-compliance remains concerning. The most common breaches identified in Round 24 involved deductions and reductions that took workers' pay below the legal minimum, accounting for 39% of cases (257 employers). A further 34% of employers failed to pay workers correctly for all working time, including unpaid overtime, training, travel time and pre-shift duties, while 16% failed to implement uprated minimum wage increases when workers became entitled to a higher rate. 

The educational bulletin also highlights ongoing problems relating to apprenticeship pay, accommodation offset rules and worker status classifications. More than 100 employers were found to have incorrectly applied apprentice rates, often by continuing to pay workers the apprentice rate after they became entitled to a higher age-related minimum wage. 

Of particular concern is the continued prevalence of unlawful deductions. Employers were found to have reduced workers' pay below the minimum wage through charges for uniforms, personal protective equipment, parking permits, childcare costs, training expenses and salary sacrifice schemes. The guidance serves as a reminder that deductions connected to employment can have significant implications for NMW compliance and may result in substantial liabilities for employers. 

The Government is urging employers to review payroll practices; ensure workers are receiving the correct age-related rate and maintain adequate records of working time and pay. Under current rules, employers must keep sufficient records to demonstrate minimum wage compliance and, since April 2021, these records must generally be retained for six years. 

For trade unions and employment practitioners, the naming round provides a timely reminder that wage underpayments remain widespread across sectors and employers of all sizes. While many cases arise from errors in payroll administration, the financial consequences for workers can be significant. The enhanced enforcement powers of the Fair Work Agency, combined with a commitment to more frequent naming rounds, suggest that scrutiny of minimum wage compliance is likely to increase in the coming years. 

Why it matters: The latest enforcement action reinforces the importance of ensuring workers receive the pay to which they are legally entitled. Employers should regularly review pay arrangements, deductions and working time practices to minimise the risk of non-compliance, while workers who believe they have been underpaid are encouraged to raise concerns with HMRC or seek advice from Acas.