Minimum wage breaches revealed by Pizza Express British Airways and others

Pizza Express, British Airways, and outsourcing giant Capita are among several high-profile businesses recently named and shamed by the UK government for failing to meet legal minimum wage requirements. A detailed investigation carried out by HM Revenue and Customs (HMRC) revealed the breach, which led to over 60,000 workers receiving back pay totalling £7.4 million.

The Department for Business and Trade conducted investigations between 2015 and 2022, which were finalised only recently, allowing for the publication of the full list. Among the worst offenders is Capita, a major contractor for the government, which underpaid £1.5 million to 5,543 workers. According to the company, the failure was due to inadvertent errors, including failing to account for 25 minutes a week of shift log-in times for call centre staff. A spokesperson confirmed all payments were made immediately, and internal systems were updated to prevent recurrence.

Pizza Express was also a notable offender, underpaying 8,470 workers by £760,702, with an average shortfall of £90 per employee. A company spokesperson admitted the error stemmed from a historical technicality that occurred between 2012 and 2018. Once identified, the company reportedly took swift action, including rectifying payments and issuing apologies to affected staff.

British Airways failed to pay £231,276 to 2,165 workers. The airline blamed the issue on slight underpayments affecting cabin crew during their first two months of employment between 2014 and 2017. The company confirmed an audit in 2017 identified the issue, after which it retrospectively compensated employees and issued formal apologies.

The report also highlighted breaches by Lidl and Halfords. A spokesperson for Halfords stated the company uncovered historical costs that were mistakenly passed to employees instead of being absorbed by the organisation. These costs were addressed in 2021, and processes were amended to ensure compliance going forward.

Paul Nowak, General Secretary of the Trades Union Congress (TUC), conveyed strong criticism of such breaches, urging ministers to intensify efforts against wage violations. He emphasised the broader implications of wage theft, describing it as detrimental not only to workers but to local economies as well. This comes as the national living wage for those aged 21 and over rose in April from £11.44 to £12.21 per hour.