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Government names 658 employers for minimum wage failures

The list included 658 employers, including B&Q, Serco Limited, Whitbread Group and Tesco Stores Limited.

Government names 658 employers for minimum wage failures
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The Government has named nearly 660 employers that failed to pay staff the National Minimum Wage.

Around £4m was returned to more than 27,000 workers, while the employers received penalties totalling £7m.

The list included 658 employers, including B&Q, Serco Limited, Whitbread Group and Tesco Stores Limited.

B&Q recorded the largest underpayment at £456,934.72 across 4,530 workers.

The announcement marked the first naming round since the Fair Work Agency was set up in April under the Employment Rights Act.

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Business Secretary Jonathan Reynolds, said: “The best businesses know that looking after your workers isn’t just the right thing to do, it’s the smart thing to do, building the stronger, more successful businesses that drive growth in every postcode.

“Most employers already understand this, and I want to work with them to ensure they have every piece of guidance and support available to help them follow the rules.

“Short-changing your staff isn’t a shortcut to success and we are determined to stamp it out.”

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Minister for the Future of Work Kate Dearden, said: “Underpaying your staff is illegal, and we will not let workers foot the bill for their boss failing to follow the rules.

“We’re making sure workers get the hard-earned pay they deserve, and where employers fall short, they will be held to account.

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“Every employer should check their payroll now and reach out to Acas if they need further support.”

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Chair of the Fair Work Agency Advisory Board Matthew Taylor, said: “The Fair Work Agency is here to make it easier for employers to understand and meet their responsibilities, while taking firm action where workers are denied the pay they are legally owed.

“This naming round is an important reminder that paying the minimum wage is not optional – it is the law. 

“Most employers want to do the right thing, and we will support them to comply, but those who fall short should expect robust enforcement to protect workers and maintain a fair playing field for responsible businesses.”

Taylor added: “We are urging all employers to check their payroll, review their processes and correct any mistakes now, so every worker receives the pay they are entitled to.”

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Catrin Mills, employment partner at Sharpe Pritchard, said: “This latest round of enforcement highlights that National Minimum Wage compliance remains a significant risk for employers, even where underpayments arise from genuine administrative or payroll errors rather than any deliberate attempt to underpay staff.

“As the new Fair Work Agency takes shape and enforcement powers become increasingly consolidated, employers should expect greater scrutiny and a continued focus on publicly identifying organisations that fall short of their obligations.

“The key message is that compliance is not simply about setting hourly pay rates above the statutory minimum.”

Mills added: “Employers should regularly audit payroll practices, deductions, salary sacrifice arrangements, allowances, training time and working time records to ensure that workers’ pay does not inadvertently fall below National Minimum Wage thresholds, as even technical breaches can result in financial penalties, reputational damage and public naming by enforcement authorities.”

A spokesperson from Serco said: “Serco employs 26,000 people in the UK. A technical error affected one contract more than two years ago and related to salary sacrifice schemes.

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“It was quickly rectified once identified and all employees were reimbursed in full.”

A spokesperson from B&Q said: “The shortfalls in payments were unintentional.

“They relate to calculations involving geographical allowances which are paid in addition to minimum hourly rates.

“All affected colleagues were quickly paid in full in July 2025.”

A spokesperson from Tesco said: “We are sorry that an isolated administrative error led to an underpayment to a single colleague. 

“This was quickly resolved and we have taken steps to make sure this doesn’t happen again.”

Workplace Journal also reached out to Whitbread Group for a comment.