Employment & Workers Rights 20 March 2026 8 min read

Hundreds of Employers Named for Illegally Underpaying Workers

What the Latest Government Crackdown Reveals

✍️ By UKPoliticsDecoded Editorial Team
Hundreds of employers named for illegally underpaying workers March 2026

The Government has publicly named 389 employers across the UK for failing to pay the legal minimum wage, following enforcement action led by HMRC, the Department for Business and Trade, and the new Fair Work Agency.

The action requires employers to repay over £7.3 million in missing wages to around 60,000 underpaid workers, alongside £12.6 million in penalties. This is the first naming round since the Chancellor committed to more frequent publication.

Key Facts at a Glance

  • 389 employers publicly named for minimum wage breaches
  • £7.3 million owed to workers has been repaid
  • 60,000 workers were underpaid
  • £12.6 million in penalties issued to employers
  • Sectors affected include social care, retail, nurseries, hospitality, and manufacturing

What Has the Government Actually Done?

Minimum wage enforcement in the UK is handled by HMRC, which investigates complaints and carries out proactive checks on employers. When a breach is found, employers are required to repay the money owed to workers and are issued a financial penalty on top.

The naming scheme goes a step further. It publicly identifies employers who have broken the law, adding reputational pressure on top of the financial penalty. The Government has committed to publishing these naming rounds more frequently, with this being the first since the Chancellor made that commitment.

Which Sectors Were Involved?

Breaches were identified across a wide range of industries, including:

  • Social care
  • Retail
  • Nurseries and childcare
  • Hospitality
  • Manufacturing
  • Sports organisations
  • Travel and transport

The spread of sectors reflects the breadth of the enforcement action and suggests that minimum wage non-compliance is not confined to any single industry.

What Ministers Have Said

Business Secretary Peter Kyle stated that most employers comply with the law, but those who do not "get ahead by not paying the wages their workers are owed." He highlighted the role of the new Fair Work Agency, which will have expanded enforcement powers.

Employment Rights Minister Kate Dearden emphasised that "nobody should finish a week's work and find they've been paid less than they've earned," urging employers to check their payroll systems to avoid breaching the law.

The Largest Underpayments: Top 10 Named Employers

The ten employers with the largest underpayments in this enforcement round are:

Rank Employer Location Amount Underpaid Workers Affected
1 ISS Mediclean Ltd Weybridge £1,506,959.68 6,580
2 ISS Facility Services Ltd Weybridge £754,760.14 5,378
3 Browns Manufacturing Ltd Sanquhar £708,731.99 1,654
4 Busy Bees Nurseries Ltd Burntwood £485,374.05 9,056
5 Bupa Care Services Ltd City of London £441,439.54 8,810
6 Hays Travel Ltd Sunderland £364,103.51 2,463
7 Amey Services Ltd Oxford £169,447.02 2,608
8 Charles Contract Services Ltd Knowle £153,240.67 177
9 Costa Ltd High Wycombe £149,851.25 2,759
10 Dovecote Park Ltd Pontefract £132,314.56 444

The Fair Work Agency: What Is It and Why Does It Matter?

Launching on 7 April, the Fair Work Agency is a new statutory body created under the Employment Rights Act. It brings together multiple enforcement functions that were previously spread across different government departments under one roof.

Its remit will include:

  • Minimum wage enforcement
  • Holiday pay compliance
  • Statutory sick pay enforcement
  • Employer guidance on legal obligations

The Agency is intended to provide a single point of contact for both workers and employers, making it easier for workers to report concerns and for employers to understand their obligations. The Government says it will have expanded enforcement powers compared to the existing arrangements.

Why This Is a Structural Shift

Previously, enforcement of different workers rights was fragmented across multiple bodies. Bringing these functions together under the Fair Work Agency represents a significant change in how the state approaches workers rights enforcement, consolidating power and resource into a single, dedicated body.

Minimum Wage Rates: What Is Changing in April 2026?

The national minimum wage is increasing in April 2026. Here is how the rates compare:

Category April 2025 April 2026
Aged 21 and over £12.21 £12.71
Aged 18 to 20 £10.00 £10.85
Under 18 £7.55 £8.00
Apprentice £7.55 £8.00

The Government estimates that the 2026 increase will give full time workers aged 21 and over an annual pay boost of around £900.

Why Are Employers Named Publicly?

The naming scheme is intended to increase transparency and deter non-compliance. By making breaches public, the Government aims to:

  • Increase transparency about which employers have broken the law
  • Deter other employers from underpaying workers
  • Encourage employers to audit their payroll systems proactively
  • Give workers confidence to challenge underpayment

The Government has committed to publishing naming rounds more frequently going forward.

Where to Find the Full List

The Government has published the complete list of all 389 employers named in this enforcement round. UKPoliticsDecoded has also archived the page to ensure long term public access.

What Can Workers Do If They Think They Are Being Underpaid?

Workers who believe they are being paid less than the legal minimum can take several steps:

  • Use the Government's Check Your Pay tool on GOV.UK
  • Seek free, confidential advice from Acas
  • Report concerns directly to HMRC

Complaints can be made anonymously, meaning workers do not have to identify themselves when reporting an employer.

The Broader Context: Cost of Living Measures

The Government has highlighted this enforcement action alongside several other policies it says are supporting household finances, including the minimum wage increase, an extension of Statutory Sick Pay to an estimated 3 million more workers, a fuel duty freeze, and energy price cap changes expected to save households around £117 in the coming months.

Why This Matters

Minimum wage enforcement directly affects day to day income for low paid workers. With nearly 400 employers named and tens of thousands of workers affected, this round highlights the scale of underpayment across the UK economy and the importance of robust enforcement.

The creation of the Fair Work Agency marks a structural shift in how workers rights will be protected, consolidating enforcement into a single body with expanded powers. Whether that translates into more effective enforcement in practice remains to be seen, but the direction of travel is clear: the Government intends to make non-compliance more visible and more costly for employers.

AI Use: AI tools were used to support source discovery and to structure the article for clarity. All research, verification, drafting, and final editorial decisions are fully human led.