Nearly 200 employers named and shamed for underpaying minimum wage staff

Employment & Skills | Latest News

Wagamama caught up in minimum wage scandal

The government has today named and shamed nearly 180 employers for underpaying more than 9,000 minimum wage workers by £1.1 million.

As well as recovering backpay for 9,200 workers, the government also fined the employers a total of £1.3 million in penalties for breaking national minimum wage laws. The most prolific offending sectors in this round were retailers, hospitality businesses and hairdressers.

It comes ahead of the next rate rise on 1 April, when the National Living Wage will go up from £7.50 to £7.83 per hour. Apprentices under the age of 19 and those in the first year of their apprenticeship will benefit from a record 5.7% rise.

Later this month the Department for Business, Energy and Industrial Strategy (BEIS) will launch a campaign to raise awareness of the new rates and encourage workers to speak to their employer if they think they are being underpaid.

Business Minister Andrew Griffiths said: “The world of work is changing and we have set out our plans to give millions of workers enhanced rights to ensure everyone is paid and treated fairly in the workplace.

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“There are no excuses for short-changing workers. This is an absolute red line for this government and employers who cross it will get caught – not only are they forced to pay back every penny but they are also fined up to 200% of wages owed.

“Today’s naming round serves as a sharp reminder to employers to get their house in order ahead of minimum wage rate rises on 1 April.”

Some of the businesses caught up in the scandal include Wagamama, Marriott Hotels, Birmingham City Football Club and St Helens Rugby Football Club.

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