The UK government has released its latest list of employers who failed to meet their National Minimum Wage (NMW) obligations. It’s a strong reminder that, even with the best intentions, payroll mistakes can carry serious reputational and financial consequences.
What’s the Latest?
In the latest “naming and shaming” round (Round 21, published on 29 May 2025), 518 employers were publicly identified for underpaying nearly 60,000 workers. In total, over £7.4 million in arrears had to be repaid – with additional penalties imposed that can reach up to 200% of the amount owed.
These were not just small businesses – the list included employers of all sizes across a range of sectors. All have now repaid the underpayments, but the damage to their reputation is done.
Why Do Employers Get Caught Out?
The most common causes of underpayment were:
- Deductions from pay (34%)
Including charges for uniforms, tools, or transport that pushed take-home pay below the minimum wage threshold. - Unpaid working time (31%)
This includes things like pre- or post-shift activities, unpaid travel between job locations, or failing to pay for mandatory training time. - Apprentice underpayments (22%)
Employers failing to apply the correct apprentice rate or missing pay increases linked to age or time served.
Other issues noted were:
- Failing to raise pay when employees moved into a higher NMW band due to age;
- Incorrect application of the accommodation offset.
These errors are often unintentional, but that doesn’t make them any less serious. The law is clear: employees must be paid at least the legal minimum for every hour they work.
What Does This Mean for Employers?
Employment Rights Minister Justin Madders commented:
“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.”
Being publicly named for underpaying staff can severely impact your reputation and employee trust – not to mention the financial cost of penalties and back payments.
Educational Spotlight: Key Lessons from the NMW Educational Bulletin (Round 21)
To support employers in understanding and applying National Minimum Wage legislation, the government has released an Educational Bulletin alongside the latest naming list. This edition focuses on two of the most common and often overlooked areas of non-compliance: apprentice pay and dress code deductions.
Key insights include:
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Apprenticeship Pay Rules: Employers must increase pay when an apprentice turns 19 and enters the second year of their apprenticeship. Failure to do so is a frequent cause of underpayment.
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Dress Code Costs: If workers are required to wear specific uniforms or clothing, any related costs (whether deducted or paid directly by the worker) must not reduce pay below the minimum wage.
The bulletin includes real-life scenarios and detailed breakdowns to help employers correctly calculate pay and avoid costly mistakes.
DOWNLOAD NOW: Educational Bulletin for Round 21 of the National Minimum Wage Naming Scheme
PRESS RELEASE: Over £7.4 million put back in working people’s pockets by employers – GOV.UK
Getting it right matters. Regularly reviewing your payroll practices is a smart step towards protecting your business and doing right by your team. If you’re unsure whether your current approach meets NMW legislation, seek expert advice sooner rather than later.