500+ employers named and shamed for wage breaches. Want to avoid the same mistakes?

In May 2025, the government published its latest list of UK employers who failed to pay the National Living or Minimum Wage.

518 employers were named and shamed. From big business names to small independent businesses. In total, 59,438 workers were underpaid by over £7.4 million.

And of course, it’s not just the money involved, either. Employers on the list must pay back the wages owed and face fines of up to 200% of the underpayment. Not to mention the reputational damage of public naming.

This is a timely warning, especially with the latest increase to National Minimum and Living Wage rates that came into effect in April 2025.

So what went wrong for these big names? And how can you avoid ending up on the name yourself?

Government data points to three common causes

First, reductions or deductions that take pay below the legal minimum. This might include charges for uniforms, meals, training costs, travel, or lost equipment. For example, Halfords admitted that certain work-related costs should have been covered by the company, not staff—resulting in inadvertent underpayment.

Second, unpaid working time. Staff must be paid for all hours worked, including pre- and post-shift time, mandatory training, and travel between work locations. Capita was the worst offender on this list, failing to pay £1.5 million to over 5,500 workers, partly because call centre staff were required to log in 25 minutes early for shifts, unpaid.

Third, incorrect pay for apprentices. Apprentices have different pay entitlements depending on their age and stage of training—an area where errors are frequent.

What were the most high-risk sectors?

Retail and hospitality were by far the most high-risk sectors. Of the 518 employers named, 98 were in hospitality and 70 were in retail. All industries where variable shifts, apprentice roles, and uniform policies are common.

Pizza Express failed to pay £760,000 to over 8,400 workers (about £90 each), due to what they described as a historic technicality between 2012 and 2018. British Airways underpaid 2,165 workers by £231,000 after discovering in a 2017 audit that new cabin crew were accidentally underpaid in their first two months.

In all cases, employers were quick to apologise and rectify any issues once discovered. But apologies or not, these mistakes can happen to anyone, and the government is showing a strong inclination towards cracking down.

Paul Nowak, TUC General Secretary says, “Wage theft is bad for workers, families, and the economy. Every pound stolen from a worker’s pocket is a pound not spent in local [businesses].” In other words, it’s in everyone’s best interests to ensure underpayment of wages is not a persistent issue.

I’m an employer, what can I do to protect myself?

First, stay informed. Minimum and Living Wage rates rise regularly, and enforcement is always increasing. Be clear on what counts as paid time, what deductions are allowed, and how apprentice pay should be handled.

Second, audit your payroll. Check for hidden risks, unpaid overtime, early start requirements, uniform deductions, or outdated apprentice rates.

Third, use reliable payroll software. Manual payroll calculations are prone to error—even large businesses get caught out, as this list shows. A good payroll system automates calculations, tracks working hours, applies the latest minimum wage rates, and ensures lawful deductions—protecting your staff and your business.

Protect your business with BrightHR Payroll

BrightHR Payroll helps you do exactly that. It’s designed to handle UK payroll compliance, from tracking shifts and pay rates to managing deductions and apprentice pay. With clear records and accurate calculations, it helps you stay on the right side of the law—and off the government’s next name-and-shame list.

Trust us, if big household names can get it wrong, any business can. But with the right tools in place, there’s no reason you should make the same “errors”.