Top 10 Companies Fined for Illegally Underpaying Workers: What the Top 100 Reveal About Compliance  |  Owen Daniels  | Powering Global STEM
09th January 2025

Top 10 Companies Fined for Illegally Underpaying Workers: What the Top 100 Reveal About Compliance

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A recent government report has revealed the stark reality of wage underpayment across the UK, naming and shaming over 500 employers who collectively underpaid more than £16 million to 172,000 workers. These findings not only highlight systemic issues but also serve as a cautionary tale for businesses navigating the complexities of payroll compliance.

While the full list spans a wide range of industries, here we spotlight the top 10 offenders and examine what businesses can learn from these costly mistakes.

The Top 10 Companies Fined for Underpaying Workers & The Amount They Underpaid

  1. Staffline Recruitment Limited |  £5,125,270
  2. Rank Group Gaming Division Limited  |  £962,505
  3. Estée Lauder Cosmetics Limited  |  £894,980
  4. Mitchells & Butlers PLC |  £565,094
  5. EasyJet Airline Company Limited  |  £338,876
  6. John D Wood & Co |   £231,298
  7. The Body Shop International Limited |  £210,000
  8. Wagamama Limited |  £150,000
  9. Pret A Manger |  £140,500
  10. H&M Hennes & Mauritz UK Limited |  £135,000

Insights from the Full Top 100

The cases above are just the tip of the iceberg. Across the top 100 companies, fines ranged from tens of thousands to over £5 million. The average fine per business among the top 100 is over £160,000, showing just how significant the financial consequences of non-compliance can be.

For those interested, the full list of offenders can be accessed on the UK Government website – here.

Why Do Businesses Get It Wrong?

From uniform deductions to misclassifying roles, wage underpayment often results from poor systems, a lack of training, or simply underestimating the complexity of payroll compliance. Key factors include:

  • Failure to Understand Regulations: National Minimum Wage laws evolve frequently, and businesses must stay updated.
  • Outdated Payroll Systems: Reliance on manual systems often leads to miscalculations.
  • Cost-Cutting Gone Wrong: Attempts to save money through deductions or reclassification often backfire.

What Can Businesses Learn?

  1. Audit Regularly: Proactive payroll audits ensure compliance before regulators come knocking.
  2. Invest in Training: Equip your HR and payroll teams with the knowledge to stay updated on laws.
  3. Adopt Technology: Modern payroll tools can identify discrepancies and automate compliance.
  4. Encourage Transparency: Open dialogue with employees helps address concerns before they escalate.

How Owen Daniels Can Help

Understanding wage compliance doesn’t have to be a headache. As seasoned compliance consultants, we offer:

  • Tailored Payroll Audits: Uncover potential compliance risks and fix them before they become costly issues.
  • Training and Guidance: Empower your teams to handle payroll with confidence.
  • Ongoing Support: From implementing the right software to navigating regulatory inquiries, we are here to help.
  • Reputation Management: If your business is facing scrutiny, we can help rebuild trust with your employees and the public.

The Cost of Non-Compliance

With over 500 employers named and £16 million owed, the stakes couldn’t be higher. Protecting your business isn’t just about avoiding fines—it’s about safeguarding your reputation, maintaining trust, and ensuring long-term success.

Partner with Owen Daniels to turn compliance challenges into opportunities. Together, we’ll build a business that thrives while staying on the right side of the law.

Reach out today and take the first step towards compliance excellence.

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