2 weeks ago
UK Minimum Wage Crackdown Repays Workers, Penalizes 658 Employers
The UK Government found that 658 employers had not correctly paid the legal minimum wage.
More than 27,000 workers received almost £4 million in back pay.
The employers were also given penalties totaling £7 million.
B&Q was one of the companies named, although it said its mistake was unintentional.
B&Q said the problem involved how geographical allowances were calculated and that workers were repaid in July 2025.
One hospital group said its case was a technical calculation issue rather than actual underpayment.
The Government wants companies to check their payroll systems more carefully.
A new agency will enforce minimum wage rules and may later handle holiday and sick pay cases.
The Government named 658 employers after minimum wage enforcement action.
More than 27,000 workers were repaid almost £4 million.
Employers received penalties totaling £7 million.
B&Q underpaid £456,934 to 4,530 workers because of allowance calculations.
The Fair Work Agency is expected to enforce holiday and sick pay rules.
- Who
- The UK Government, the Fair Work Agency, and 658 named employers, including B&Q, healthcare providers and NHS trusts.
- What
- Employers were found to have breached National Minimum Wage rules, resulting in worker repayments and financial penalties.
- Where
- The enforcement action took place in the UK.
- When
- The naming round was announced after the Fair Work Agency was established in April; B&Q said affected workers were repaid in July 2025.
- Why
- The Government said employers must pay workers the legal minimum and intended to improve compliance with employment law.
Enforcement and Worker Protection
Employer Explanations
Purpose of Naming Employers
Enforcement and Worker Protection
The Government and TUC say employers that fail to pay the legal minimum should be publicly named and held accountable.
Employer Explanations
The cases do not necessarily show deliberate attempts to avoid paying workers, because some resulted from payroll or compliance errors.
B&Q Shortfall
Enforcement and Worker Protection
Enforcement findings said B&Q underpaid £456,934 to 4,530 workers.
Employer Explanations
B&Q said the shortfall was unintentional, related to geographical allowance calculations, and that all affected employees were paid in full in July 2025.
Hospital Group Case
Enforcement and Worker Protection
St George’s, Epsom and St Helier Hospital Group was linked to a £123,331 shortfall involving 75 workers.
Employer Explanations
The hospital group said no employees were actually underpaid and described the issue as a technical calculation matter involving salary sacrifice arrangements.
Key facts
- Employers named
- 658
- Workers repaid
- More than 27,000
- Total repayments
- Almost £4 million
- Penalties issued
- £7 million
- Largest cited B&Q shortfall
- £456,934 involving 4,530 workers
- Fair Work Agency
- The naming round was its first since the agency was established in April.
- Possible future enforcement
- Holiday pay and sick pay violations are expected to come under its remit.
Quotes
Jonathan Reynolds
UK Business Secretary
“short-changing your staff isn’t a shortcut to success.”
easterneye.biz
Sources
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