Nearly 660 employers named for minimum wage failures
The Government has named nearly 660 employers for failing to pay the National Minimum Wage. Consequently, the announcement shows how costly compliance failures can become.
The latest naming round appeared on 3 September 2026. In total, around £4 million went back to more than 27,000 workers. Furthermore, employers received penalties totalling £7 million.
Why compliance is not just about the hourly rate
The key point runs deeper than simple arithmetic. Employers cannot simply compare an hourly rate with the statutory minimum and assume all is well.
From April 2026, the National Living Wage is £12.71 an hour for workers aged 21 and over. Meanwhile, the rate is £10.85 for those aged 18 to 20. In addition, workers under 18 and qualifying apprentices receive £8.00.
Where problems commonly arise
Problems can still occur even where the stated hourly rate looks correct. Employers must therefore consider actual pay received and all working time.
Certain deductions reduce minimum wage pay. Similarly, unpaid activities create risk. Common examples include:
- opening or closing the premises
- compulsory training sessions
- changing into required clothing or uniform
- carrying out security checks
Errors also arise where employees must buy items connected with their work. Moreover, small mistakes repeated across several employees quickly add up. Over time, these become significant liabilities.
The consequences of getting it wrong
Employers who underpay workers must repay the arrears. In addition, they may face financial penalties. Public naming can then cause lasting reputational damage.
Indeed, nearly 660 employers named for minimum wage failures will now manage that fallout.
Steps to take now
Fortunately, a simple review helps. To start, you should:
- check payroll rates against current statutory minimums
- review birthdays that move employees into a higher age band
- examine deductions and working-time arrangements
- consider any employee spending connected with work
- confirm apprentices receive the correct apprentice rate
Most employers genuinely intend to pay staff properly. However, the rules prove more complex than they first appear. Therefore, a short review now could catch an innocent error early.
Talk to us about your payroll
Nearly 660 employers named for minimum wage failures serves as a timely warning. Please contact us to review your payroll and working-time arrangements before problems arise.
