
Thousands of people in work to receive back payments from their employer
Over 40 businesses in Scotland have been identified by the UK Government for failing to pay their employees the minimum wage.
Income tax rises for Scots in April - how the changes affect you
The UK Government has announced that workers who have been left out of pocket by their employer will receive arrears payments, in its latest move to Make Work Pay.
This follows a significant uplift to the National Living Wage and National Minimum Wage for the 2025/26 financial year - giving full-time employees an extra £1,400. The Employment Rights Bill will deliver the biggest upgrade to workers' rights in a generation.
As part of the Plan for Change, the Labour Government's priority is to grow the economy and raise living standards. It said a strong economy can only be built when people have financial security while in work and robust enforcement action will be taken against employers who do not pay their staff correctly.
Across the UK, 518 businesses were found to have failed to pay their workers over £7.4 million in a breach of the National Minimum Wage law, leaving almost 60,000 workers out of pocket, including 44 businesses in Scotland.
The businesses named by the UK Government have since paid back what they owe to their staff and faced financial penalties of up to 200 per cent of their underpayment. The investigations by His Majesty's Revenue and Customs (HMRC) concluded between 2015-2022.
Minister for Employment Rights Justin Madders said: 'There is no excuse for employers to undercut their workers, and we will continue to name companies who break the law and don't pay their employees what they are owed.
'Ensuring workers have the support they need and making sure they receive a fair day's pay for a fair day's work is a key commitment in our Plan for Change. This will put more money in working people's pockets, helping to boost productivity and ending low pay.'
National Living Wage and National Minimum wage rates
National Living Wage rate:
21 and over - £12.21 per hour
18 to 20 - £10.00
Under 18 - £7.55
Apprentice - £7.55
The minimum wage law applies to all parts of the UK, if you think you are being underpaid, visit GOV.UK here to find out more about what to do.
Workers can also call the Acas helpline on 0300 123 1100 or visit their website for free, impartial and confidential advice or complain to HMRC at Pay and work rights helpline and complaints
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