Naming and Shaming: Nearly 660 Employers Named for Failing to Pay the Minimum Wage

The Government has just published its latest national minimum wage "naming round", identifying nearly 660 employers who failed to pay staff the correct rate, with around £4 million returned directly to affected workers. It's a timely and pointed reminder that getting it wrong results in consequences going well beyond simply repaying what's owed.

What the National Minimum Wage Naming Round Revealed

Naming rounds have been running since 2011 and this latest one is a reminder of just how far-reaching enforcement has become. Around £4 million has gone back to more than 27,000 underpaid workers with total penalties issued to employers reaching £7 million. Since the scheme began, cumulative penalties have now passed £100 million across over 5,200 employers, with more than £66 million being repaid to around 650,000 workers in total.

The businesses named span a genuinely broad range of sectors, including hospitality, retail, care, childcare, construction and professional services and range from sole traders to large national brands. The underpayments themselves vary hugely too, from a few hundred pounds owed to a handful of workers, up to sums in the hundreds of thousands affecting thousands of staff. No sector, and no size of business, is immune.

A New Enforcement Body With More Muscle

This is also the first naming round since the Fair Work Agency was launched earlier this year. This newly established enforcement body was created under the Employment Rights Act to bring workers' rights enforcement together under one roof for the first time, giving employers a single place to get guidance while equipping regulators with stronger powers to make sure workers receive what they're owed. Its remit isn't limited to minimum wage compliance either. It's expected to move on to enforcing holiday pay and sick pay rules next, meaning this naming round is likely just the first of several increasingly wide-ranging enforcement actions to come.

Why This Matters Beyond the Financial Penalty

The direct costs of getting the minimum wage wrong are serious enough: repayment of arrears, financial penalties on top and the very real prospect of being named publicly. But the reputational cost of appearing on a Government naming list can be just as damaging, affecting recruitment, client relationships and public perception, often long after the underlying issue has been fixed.

Minimum wage breaches are also often unintentional. Employers can easily fall foul of the rules through practices that don't look like underpayment on the surface, such as unpaid working time, deductions for uniforms or training costs, or salary sacrifice arrangements that inadvertently take pay below the minimum threshold. Government guidance makes clear that employers are expected to carry out proper checks when calculating the minimum wage and a lack of understanding of the rules is not treated as a defence.

What Employers Should Do Now

Audit your payroll now, don't wait for a complaint. Review how pay is calculated across your workforce, including any deductions, unpaid time, or non-standard pay arrangements that could unintentionally reduce effective hourly pay below the minimum.

Understand the current rates. As of April 2026, the National Living Wage for workers aged 21 and over is £12.71 per hour, with £10.85 for those aged 18 to 20, and £8 for under-18s and apprentices. Rates change every April and it's easy for payroll processes to fall out of step.

Take any worker complaint seriously. Government guidance encourages employers to check their payroll now and reach out to Acas if support is needed, rather than waiting for a formal complaint or investigation to prompt action.

Get advice if you're unsure. Minimum wage calculations can be more complex than they first appear, particularly where deductions, benefits in kind, or irregular working patterns are involved. Early advice can prevent a genuine mistake turning into a costly, and public, enforcement action.

Frequently Asked Questions

What happens if my business is named for underpaying the minimum wage? Named employers must repay arrears to affected workers, pay a financial penalty on top, and appear on a published Government list, which can carry significant reputational consequences alongside the financial ones.

What are the current National Minimum Wage rates? As of April 2026, the National Living Wage for workers aged 21 and over is £12.71 per hour, with £10.85 for those aged 18 to 20, and £8 for under-18s and apprentices.

What is the Fair Work Agency? The Fair Work Agency is a new enforcement body created under the Employment Rights Act 2025, bringing minimum wage, holiday pay, and other workers' rights enforcement together under one roof.

Impact

The Government's own message is blunt: short-changing staff isn't a shortcut to success. With the Fair Work Agency now overseeing enforcement and naming rounds continuing on a more regular basis, the risk of being caught out, and named publicly, has never been higher. Reviewing payroll practices now is a far better strategy than waiting to see whether your business appears on the next list.

Contact Oliver Tasker if you want to discuss: 📞 Call: 01522 776270 ✉️ Email: oliver@impactemploymentlaw.co.uk

Impact Employment Law Limited, Advice. Protection. Impact.