Major retailers and hospitality firms named in minimum wage enforcement action

The Fair Work Agency has published the names of 658 companies that have been fined a total of seven million pounds and ordered to repay four million pounds to more than 27,000 workers. The enforcement action targets businesses that failed to pay the legal minimum wage. Among the firms singled out are major high street names Tesco, B&Q and Whitbread, as well as two McDonald’s franchises in Essex and Warwickshire. The agency, which was established in April under the Employment Rights Act, has been granted new powers to ensure compliance with the government’s workers’ rights regulations.

Business Secretary Jonathan Reynolds announced the crackdown, stating that short-changing staff is not a shortcut to success and that the government is determined to stamp out such practices. Kate Dearden, the minister for the future of work, emphasised that underpaying staff is illegal and that workers should not bear the cost of their employers’ failures to follow the rules. She added that the government is ensuring workers receive the pay they deserve and that employers who fall short will be held to account. Matthew Taylor, chair of the agency’s advisory board, described the naming round as an important reminder that paying the minimum wage is a legal obligation, not an optional choice. He noted that while most employers wish to do the right thing, those who fail to comply should expect robust enforcement to protect workers and maintain a fair playing field for responsible businesses.

The specific financial shortfalls vary significantly across the named companies. Tesco was identified for failing to pay 227.84 pounds to one worker. B&Q, which is owned by Kingfisher, was ordered to repay nearly 457,000 pounds to 4,530 workers. Whitbread, the hospitality firm that owns Premier Inn, failed to pay nearly 4,200 pounds to 342 employees. The two McDonald’s franchises were required to pay back more than 29,000 pounds to 797 workers in total. Other companies named in the list include outsourcing firm Serco, fast-food chain Five Guys and private security firm G4S. The Fair Work Agency has the authority to search individuals and work premises, and to seize evidence if it suspects a firm has breached employment law.

Responses from the affected companies have varied. A spokesperson for B&Q stated that the minimum wage shortfalls were unintentional and that the affected workers were paid in full in July of the previous year. Tesco apologised for what it described as an isolated administrative error, adding that the issue was quickly resolved and steps have been taken to prevent recurrence. Serco attributed the issue to a technical error affecting one contract more than two years ago, related to salary sacrifice schemes, which was rectified once identified. The McDonald’s franchisees apologised to all affected employees and confirmed that steps were taken to resolve the pay issues as soon as they became aware of them.