Government names 658 employers for failing to pay the national minimum wage, signalling intensified enforcement under the new Fair Work Agency

Background

The government has published the names of over 600 employers that failed to pay the national minimum wage (NMW). Approximately £4 million has been repaid to over 27,000 workers, with penalties totalling £7 million issued to the employers responsible. This is the 24th naming round since the scheme launched in 2011. Since that time, more than £100 million in penalties have been issued to over 5,200 employers, leading to over £66 million being repaid to 650,000 workers.

This is the first naming round since the establishment of the Fair Work Agency (FWA) in April 2026. HM Revenue and Customs (HMRC) currently enforces NMW compliance on behalf of the FWA, but the FWA is expected to assume full enforcement responsibility from April 2027. The FWA's remit will extend beyond minimum wage enforcement to cover holiday and sick pay obligations.

What the guidance covers

Alongside the naming list, the government published an educational bulletin setting out the most common causes of underpayment. These include deductions from wages for items such as food, travel costs, equipment, childcare and salary sacrifice schemes; unpaid working time, including pre- or post-shift work, travel time and overtime; and failure to pay the uprated minimum wage following a worker's birthday or from 1 April each year.

The highest individual underpayment in this round was attributed to a major retailer, which failed to pay over £456,000 to 4,530 workers, citing the calculation of geographical allowances. Other significant shortfalls arose from technical payroll errors affecting large workforces.

Current NMW rates from April 2026 are £12.71 per hour for workers aged 21 and over, £10.85 for workers aged 18 to 20, and £8.00 for workers under 18 and apprentices.

Learning points for employers

Employers found to have underpaid workers face significant reputational damage, as they are publicly named alongside the arrears and affected workers, with penalties of up to 200% of the arrears.

Many breaches arise from payroll errors. Employers should review deductions, working time (including preparation, handovers and travel), and ensure NMW rates are updated promptly each April and when workers reach relevant age thresholds.

With the FWA gaining full enforcement powers from April 2027, employers should use the opportunity to audit payroll processes, strengthen compliance procedures and address any underpayments before enforcement action is taken.

For more information or advice, please get in touch with Sharmin Chowdhury in our Employment team.