The Fair Work Agency reveals 658 firms underpaid over 27,000 workers, totaling £4 million in lost wages
Category: Politics
The UK government has publicly named and shamed 658 employers for failing to pay their employees the national minimum wage, affecting over 27,000 workers who are owed a total of £4 million. This latest crackdown, announced on September 3, 2026, is part of a broader initiative by the Fair Work Agency to enforce compliance with wage laws across the country.
Among the firms identified in this round of enforcement are well-known companies such as B&Q, which was reported to owe £456,934 to 4,530 workers, and fast-food chain Five Guys, which failed to pay £54,642 to 3,699 staff members. Other notable names include Tesco, which shortchanged one employee by £227.84, and outsourcing giant Serco, which owed £36,303 to 374 workers. The government has issued a total of £7 million in penalties to these organizations for their violations.
The Fair Work Agency's actions come as part of a commitment to regularly publish lists of employers who fail to meet their legal obligations, ensuring that firms are held accountable for their actions. Business Secretary Jonathan Reynolds stated, "Short-changing your staff isn’t a shortcut to success, and we are determined to stamp it out." He emphasized that responsible businesses understand the importance of treating their employees fairly.
This latest naming round follows a similar announcement made earlier in 2026, where almost 400 employers were reported for underpaying approximately 60,000 workers by over £7.3 million. Since the launch of naming lists in 2011, more than 5,200 employers have faced penalties exceeding £100 million. The Fair Work Agency, established in April 2026, aims to consolidate workers’ rights enforcement under one umbrella, allowing for more effective oversight and compliance measures.
The national minimum wage was updated in April 2026, now set at £12.71 per hour for employees aged 21 and over, £10.85 for those aged 18 to 20, and £8 for apprentices and under-18s. With these changes, the government is taking a firm stance against employers who fail to comply with wage laws, as highlighted by Minister for the Future of Work Kate Dearden. She warned, "Underpaying your staff is illegal, and we will not let workers foot the bill for their boss failing to follow the rules." Dearden encouraged employers to review their payroll practices and seek assistance from the Advisory, Conciliation and Arbitration Service (Acas) if needed.
The Fair Work Agency is expected to expand its enforcement capabilities beyond minimum wage compliance, targeting employers who deny workers their entitled holiday and sick pay. This initiative is part of a broader effort to improve working conditions and uphold workers' rights across the UK. Matthew Taylor, chair of the agency’s advisory board, noted that the recent naming round serves as a reminder that compliance with minimum wage laws is not optional but a legal requirement.
As the government continues its crackdown on wage violations, affected workers can expect to receive their owed wages through the enforcement actions taken against their employers. The agency is also committed to providing guidance and support to businesses to help them comply with wage laws, aiming to create a fairer working environment for all.
In Scotland, 50 firms were highlighted for failing to pay minimum wage, with notable offenders including Collin Care Ltd, which owed £28,149 to 77 workers, and Murdoch Allan & Son, which failed to pay £24,150 to seven employees. In total, nearly 700 workers in Scotland were affected, underscoring the widespread nature of the issue.
As the Fair Work Agency continues to publish these naming lists, it aims to encourage businesses to rectify their payroll issues and improve compliance with wage laws. The government has expressed its determination to protect workers and maintain a fair playing field for responsible employers.
With the next naming round anticipated, businesses are urged to take proactive measures to avoid being included on future lists. Employers are reminded that paying the minimum wage is not just a legal obligation but also a fundamental aspect of good business practice.
As the enforcement efforts intensify, the government remains committed to ensuring that workers receive the pay they deserve, with the Fair Work Agency leading the charge in holding employers accountable for their actions.
As of now, businesses are encouraged to review their payroll systems and rectify any discrepancies to avoid future penalties. The Fair Work Agency's focus on compliance and accountability signifies a shift in how worker rights are enforced in the UK, with the aim of fostering a more equitable work environment for all.