Over 500 UK Employers Named for National Minimum Wage Violations

In a significant move to uphold labor rights, the UK government and HM Revenue and Customs (HMRC) have publicly identified 518 employers for failing to comply with national minimum wage laws. This announcement, made on June 24, 2025, underscores the ongoing challenge of ensuring fair wages across various sectors in the UK. Gillian Harrington, an employment law expert at Pinsent Masons, emphasized the need for employers to conduct comprehensive audits of their payroll practices to prevent such breaches.

The HMRC's latest report reveals that a staggering 34% of the named employers had improperly deducted wages, leading to payments falling below the national minimum wage threshold. Common deductions included costs for meals, travel, and training, which, if not correctly accounted for, can significantly impact a worker’s earnings. Harrington stated, “Employers may not even be aware they are breaching requirements. Regular audits are essential to ensure compliance with minimum wage regulations.”

In addition, 31% of those named failed to compensate workers adequately for their working hours, including issues arising from rounding clock-in times and underpayment for mandatory training sessions. Another critical issue highlighted was the improper payment to apprentices, with 22% of the listed employers misclassifying their status or failing to raise their wages upon completion of their training.

This wave of naming and shaming coincides with the Office for National Statistics (ONS) report, which indicated a slowdown in wage growth. The ONS reported that the annual growth rate of employees' average earnings fell to 5.2% in February to April 2025, down from previous periods, signaling potential challenges for workers amid rising living costs. The Low-Pay Commission (LPC) is currently deliberating a potential increase in the national living wage, seeking to address the cost of living and eliminate age banding discrepancies.

Harrington's insights reflect a broader concern within the employment landscape. “The latest round of naming and shaming serves as a wake-up call for businesses,” she remarked. “Employers must take proactive measures to ensure their payroll systems are compliant and that they are treating their employees fairly.”

As the UK continues to navigate the complexities of the labor market, the importance of compliance with minimum wage laws remains paramount, not only for the well-being of workers but also for the integrity and reputation of businesses across the nation. The implications of these violations extend beyond financial penalties, potentially damaging the trust between employers and employees, and affecting overall workforce morale. Moving forward, businesses must prioritize transparency and fairness in their compensation practices to foster a more equitable labor environment.