HMRC names companies underpaying NMW

HMRC names companies underpaying NMW

A total of 240 UK employers have been named and shamed by HMRC for not paying the national living and minimum wage.

The government found there is currently £1.44m owed in back pay to 22,400 staff. These companies are also being fined an additional £1.97m. Earlier this year, the number of companies underpaying its staff was 179.

Some of the employers failing to pay the living and/or minimum wage include sports teams such as Northampton Town FC, Newcastle Falcons, Durham Cricket CIC and Manchester Sale Rugby Club.

Other businesses on the list were fast food chains KFC, Pizza Hut, Subway and Domino’s Pizza.

Sportswift owed the most money (£430,097 owed to 10,256 workers) followed by TJ Morris (£272,228 to 6,743 workers).

Business minister Andrew Griffiths said, “Our priority is making sure workers know their rights and are getting the pay they worked hard for. Employers who don’t do the right thing face fines as well as being hit with the bill for backpay.

“The UK’s lowest paid workers have had the fastest wage growth in 20 years thanks to the introduction of the National Living Wage, and today’s list serves as a reminder to all employers to check they are getting their workers’ pay right.”

Employers who pay less than the minimum wage have to pay back the worker at current minimum wage rates and face penalties of up to 200% of arrears, capped at £20,000 per worker.

Bryan Sanderson, Low Pay Commission chairman said, “It is crucial that employers understand their responsibilities and workers know their rights around the minimum wage. That is why active enforcement and effective communication from Government is so important.

“It is therefore encouraging to see that HMRC has recovered unpaid wages for the largest number of workers yet in this round of naming and shaming. I’m confident that the Government will continue to pursue underpayment of the minimum wage vigorously.”

In March this year, Birmingham City, Stoke City, Wagamama and Karen Millen Fashions were among the initially 179 businesses named and shamed by HMRC. This was before the minimum wage increased to £7.83 on the 1 April.