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Wages

Major companies punished for minimum wage failures

Hundreds of companies in the UK are facing punishments after they were caught failing to meet the national minimum wage, including several major brands.

Almost 400 firms were named in the data as having underpaid employees, including the likes of Costa, Bupa Care Services, ISS and Hays Travel. These underpayments add up to over £7.3 million, which they have been ordered to repay to the 60,000 employees who were impacted. On top of this, the companies exposed as offenders will face financial sanctions to the tune of £12.6 million.

They have also been publicly criticised by Peter Kyle, the business secretary. According to Personnel Today, he said:

“The vast majority of businesses in this country do the right thing by paying their staff properly and playing by the rules. It’s not fair on them when others are able to get ahead by not paying the wages their workers are owed.”

The release of this data is something promised by the Chancellor in the last budget and it will be an ongoing measure. That leaves underpaying companies with nowhere to hide, and the combination of public opprobrium and financial penalties mean it is not worth the risk.

It will be increasingly important for their HR teams to be on top of contract and payroll discrepancies. Smaller firms that do not have their own teams may want to bring in outsourced HR services in Hertfordshire to manage the issue.

These can ensure future minimum wage compliance but also address any disputes arising from past underpayments, before they lead to this kind of reputational damage.