Nearly 500 Employers Fined for Minimum Wage Breaches: Why Compliance Matters More Than Ever

Almost 500 UK employers have recently been fined a combined £10.2 million for failing to pay the National Minimum Wage (NMW), with £6 million repaid to approximately 42,000 workers.

The list includes several well-known high-street brands, a reminder that businesses of all sizes and sectors can face challenges when applying minimum wage rules correctly.

For employers, the message is clear: compliance remains firmly under the spotlight.

Increased Scrutiny on Employers

This latest naming round highlights the government’s continued focus on protecting worker pay and enforcing labour standards.

Minimum wage errors are not always intentional. In many cases, underpayments occur due to misunderstandings around areas such as:

• Employee travel time

• Salary deductions (including uniforms or equipment)

• Apprenticeship rates

• Unpaid working time

• Pay increases not being implemented at the correct time
  

However, regardless of the cause, the consequences can be significant, both financially and reputationally.

Upcoming Wage Increases

Employers should also be preparing for further rate changes from April 2026:

Category	2025 Rate	2026 Rate
National Living Wage (21+)	£12.21	£12.71
Age 18–20	£10.00	£10.85
Under 18	£7.55	£8.00
Apprentice	£7.55	£8.00

Regular payroll reviews are becoming increasingly important to ensure updates are applied correctly and on time.

The Cost of Getting It Wrong

Failing to pay staff correctly can lead to:

• Substantial financial penalties

• Repayment of arrears

• Public naming by the government

• Damage to brand reputation

• Reduced employee trust
  

With workers encouraged to seek guidance from Acas or raise complaints directly with HMRC, the likelihood of issues being identified has never been higher.

Stronger Enforcement on the Horizon

Looking ahead, the government plans to expand oversight of labour standards through the creation of a new Fair Work Agency, expected as part of the upcoming Employment Rights Bill.

The agency will have enhanced powers to investigate employers and tackle issues including:

• Underpayment of wages

• Holiday pay breaches

• Statutory sick pay failures
  

This signals a shift toward more proactive enforcement, making it essential for businesses to review their processes now rather than react later.

Taking a Proactive Approach

The complexity of payroll legislation means even well-run businesses can make mistakes. Taking preventative steps can significantly reduce risk, such as:

• Conducting regular payroll audits

• Reviewing worker classifications

• Ensuring pay increases are implemented promptly

• Keeping accurate, detailed records

• Seeking professional guidance when unsure
  

Proactive support not only protects your business but also demonstrates a commitment to fairness and transparency, qualities that today’s workforce increasingly values.

How We Can Help

Ensuring your employees are paid correctly is fundamental to running a responsible and resilient business.

If you would like reassurance that your payroll processes are compliant or need support navigating upcoming wage changes, our team is here to help.

Get in touch with SJC, Chartered Accountants, to make sure your business stays on the right side of regulation while supporting your people effectively.