Key facts
- The Fair Work Agency has identified 658 companies for minimum wage violations.
- Fines totaling £7 million have been issued, with £4 million to be repaid to workers.
- Over 27,000 workers were affected by underpayment of the minimum wage.
- Tesco, B&Q, and Whitbread are among the companies named in the crackdown.
- The Fair Work Agency was established in April with new powers to enforce workers' rights.
The UK's newly established Fair Work Agency has publicly named and shamed 658 companies for failing to pay the minimum wage, imposing fines totaling £7 million and ordering the repayment of £4 million to over 27,000 workers.
Business Secretary Jonathan Reynolds stated that "short-changing your staff isn’t a shortcut to success" and vowed to stamp out such practices. Among the named companies was Tesco, which underpaid one worker by £227.84. Home improvement retailer B&Q, owned by Kingfisher, was ordered to pay back nearly £457,000 to 4,530 employees. Whitbread, the owner of Premier Inn, failed to pay £4,200 to 342 staff members.
Two McDonald's franchises in Essex and Warwickshire were also cited for underpaying a combined total of 797 workers by over £29,000. Outsourcing firm Serco, fast-food chain Five Guys, and private security company G4S were also identified.
Minister for the future of work, Kate Dearden, emphasized that underpaying staff is illegal and that employers who fall short will be held accountable. The Fair Work Agency, established in April, has powers to investigate workplaces, search individuals, and seize evidence.
Matthew Taylor, chair of the agency's advisory board, stressed that paying the minimum wage is a legal requirement. He noted that while most employers comply, robust enforcement will protect workers and ensure a fair playing field.
Representatives from B&Q, Tesco, Serco, and the McDonald's franchisees stated that the underpayments were unintentional or due to administrative or technical errors, and that affected employees have been reimbursed.