This week the Department for Business, Energy and Industrial Strategy (BEIS) published their latest list of 191 employers who had breached national minimum wage legislation by underpaying their staff. Collectively, the employers are said to have failed to pay £2.1 million to over 34,000 workers between 2011 and 2018. The largest underpayment was by John Lewis, which failed to pay £941,355.67 to 19,392 workers. A number of other household names also appeared in the list, including The Body Shop, Pret A Manger and several football clubs. BEIS has confirmed that the employers on the list have since paid back what they owed and were in addition fined a total of £3.2 million.

 

In a press release containing the list, BEIS states that not all underpayments are intentional, but reminds employers that they have a responsibility to abide by the law. The reasons for underpayment by employers in this list included incorrect deductions (including for uniforms and expenses), failing to pay workers for time worked (including overtime), and paying the incorrect apprenticeship rate.  The policy decision to 'name and shame' is controversial and criticised by many employers, due to the fact that no distinction is made between those employers who were guilty of a more technical, minor infringement and those blatant offenders who had sought to deliberately underpay and exploit their staff. 

 

This is the second time the government has "named and shamed" employers since the scheme was paused in 2018. The process resumed on 31 December 2020 when 139 employers were named.   

Employers who tend to pay wages at or close to the national minimum wage levels always need to take advice to ensure that their practices are compliant, given the financial and reputational risks of getting it wrong.