29 May 2025
The Department for Business and Trade (DBT) has released the latest list of companies that were found to have underpaid staff by failing to pay the National Living Wage (NLW) and National Minimum Wage (NMW).
The government announced today, Thursday 29 May 2025, that almost 60,000 workers have been identified as being left out of pocket by their employers, resulting in over £7.4 million needing to be repaid.
The employers and businesses named today were found non-compliant during HM Revenue and Customs (HMRC) investigations between 2015-2022. They have since compensated their staff the money they were owed.
The businesses have also paid additional financial penalties of up to 200% of their underpayment, but bigger than that, the reputational damage of being named on the list can’t be overlooked.
Companies that undergo a compliance check from HMRC can find themselves on this list if they are found to have breached NMW rules. The list shows the number of employees affected as well as a total underpayment found by HMRC.
The CIPP urge the list to be interpreted carefully, the size of the underpayment may seem large but when distributed between the number of employees can be relatively small. This is not to underplay the severity of NMW breaches, compliance should be the first thing to consider, but payroll professionals are well aware of the small errors that can result in a breach, for example a manager requiring a certain colour of shirt to be worn for work, resulting in a deduction for NMW purposes.
You can find more guidance and information on NMW at the links below:
Event Booking | Book Payroll Events Online | CIPP
National Minimum Wage (NMW) Payroll Resources | CIPP
The National Minimum Wage and Living Wage: Overview
National Minimum Wage and Living Wage calculator for employers
Minimum wage for different types of work: Overview
If workers suspect they are being underpaid, they can visit gov.uk/checkyourpay to find out more about what they can do.
Workers can also call the Acas helpline on 0300 123 1100 or visit their website for free, impartial and confidential advice or complain to HMRC at Pay and work rights helpline and complaints
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.
