The Government has named nearly 660 employers for failing to pay workers the National Minimum Wage, highlighting how costly National Minimum Wage compliance failures can become.
The latest naming round, published on 3 September 2026, involved around £4 million being repaid to more than 27,000 workers. Employers were also issued with penalties totalling £7 million.
The key point for employers is that minimum wage compliance is not simply a matter of comparing an employee's hourly rate with the statutory minimum.
For workers aged 21 and over, the National Living Wage is £12.71 an hour from April 2026. The rate is £10.85 for those aged 18 to 20 and £8.00 for workers under 18 and qualifying apprentices.
Problems can still arise where the stated hourly rate appears correct.
Employers need to consider the actual pay received for minimum wage purposes and all working time. Certain deductions can reduce minimum wage pay, while unpaid activities such as opening or closing premises, compulsory training, changing into required clothing or carrying out security checks can also create problems.
Errors may also arise where employees are expected to buy items connected with their employment.
Small mistakes repeated across several employees and over a period of time can therefore become significant liabilities.
Employers who underpay workers may have to repay arrears and face financial penalties. Public naming can also cause reputational damage.
This is a good time to carry out a simple review.
Check payroll rates, particularly after birthdays that move younger employees into a higher age band. Review deductions, working-time arrangements and any employee expenditure connected with work.
Businesses employing apprentices should also make sure the apprentice rate is being used correctly.
Most employers intend to pay staff properly. The difficulty is that the rules are more complex than they first appear.
A short review now could identify an innocent error before it becomes an expensive one.