3 days ago
More than 500 firms named for underpaying workers as 60,000 set to get refunds worth £7.4million – how to check YOUR pay
TENS of thousands of workers are in line for a financial boost after over 500 companies failed to pay the national living wage.
Almost 60,000 employees were underpaid, with a total of £7.4million now owed to them in repayments.
The Department for Business and Trade has revealed that 518 companies failed to pay the national minimum and living wage to their staff between 2015 and 2022.
These companies have now been publicly named and shamed for breaking the law.
You can check if your company was guilty of underpaying its staff in our tool above.
Under the national minimum wage (NMW) rules, workers must be paid a set hourly rate.
However, investigations found that many employers ignored this legal requirement.
Among the companies listed are Capita HR Solutions, which underpaid 5,543 workers by an average of £208.27 each, and Pizza Express, which short-changed 8,470 staff members by an average of £89.81 each.
Virtual Marketing Services (Gibraltar) Ltd recorded the highest average underpayment, owing £11,665.43 to each of its 41 employees.
Other well-known names on the list include Lidl, which underpaid 3,423 workers by an average of £83.68, British Airways, with £106.82 owed to 2,165 employees, and Halfords, which underpaid 4,341 staff by £32.44 each.
These employers have since been forced to repay what they owed, and have faced financial penalties of up to 200% of the underpayment.
Justin Madders, minister for employment rights, 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.
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"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."
What is the national minimum wage?
At the moment, there are two different minimum rates all workers are supposed to get across the UK - the national minimum wage (NMW) and the national living wage (NLW).
The NMW is the minimum hourly rate for workers who have finished school.
For those under 18 and apprentices, the rate is at least £7.55 an hour.
Workers aged 18 to 20 must earn a minimum of £10 an hour.
The NLW applies to workers aged 21 and over and is slightly higher.
At present, everyone over the age of 21 must be paid at least £12.21 an hour.
Who gets the National Minimum Wage and am I entitled?
TO qualify for the National Minimum Wage, you have to be of school-leaving age, which is usually above 16.
You are eligible to receive the pay rate if you work full-time, part-time or as a casual labourer.
You are also entitled to the National Minimum Wage if you are an agency worker.
Apprentices also qualify for a National Minimum Wage, as well as trainees and staff still in their probationary period.
The rates also apply to disabled workers.
Those who are self-employed, voluntary workers, company directors, and family members who live in the home of the employer and do household chores do not qualify for the minimum wage.
Au pairs, members of the armed forces, and people on a government employment programme are also not entitled to the payment.
How to check if you've been underpaid
There are several reasons why you might not be receiving the minimum wage, despite it being illegal for employers to underpay.
One common issue is unpaid working time, which can lower your hourly rate below the legal minimum.
This includes tasks like overtime, training hours, or being asked to arrive early for shifts.
Your employer might fail to increase your pay when rates rise every April or neglect to adjust your salary if you move into a higher wage bracket as you get older.
Even having to purchase a uniform for work can reduce your earnings to below the minimum wage.
To check if you're being paid correctly, you can use the government's national living wage calculator.
It will help you determine whether your salary matches the legal requirements.
How to get the money you're owed
If you believe you've been underpaid, there are two main ways to address the issue.
You can anonymously report the company to HMRC online.
During the process, you'll need to provide personal details and information about your complaint.
It's important to agree to let HMRC contact you, as they may need additional details to progress your claim.
If HMRC has enough evidence, they will launch an investigation into your employer.
If you've been underpaid, HMRC can force your employer to repay the missing amount, backdated by up to six years at the current minimum wage rate.
If other employees have also been affected, they will receive refunds as well.
HMRC may fine your employer or even take them to court if they refuse to pay.
However, these investigations can take several months, so it's not the quickest route to recover your money.
Alternatively, you could begin with an informal chat with your boss.
Decide whether you'd like to request back pay for what you're owed or focus on ensuring you're paid the correct rate going forward.
Come prepared with evidence of your claim, such as payslips and an estimate of how much you've been underpaid.
If this informal discussion doesn't resolve the issue, you can escalate by making a formal complaint.
Check with your company's HR department for guidance on how to do this.
If all else fails, your final option is to take the company to an employment tribunal.
