Unpaid Minimum Wage Claims: HMRC Identifies Over 500 Employers Who Underpaid Staff

Recently, a few big names have failed to meet the national minimum wage requirements, resulting in unpaid minimum wage for staff.

HM Revenue and Customs (HMRC) have identified over 500 companies that seem to have failed to meet these requirements. Over £7.4 million in underpaid wages needed to be repaid. We explore the recent findings of HMRC and dive into what employees can do if they have an unpaid minimum wage claim.

Employer not paying your wages? We can help! Redmans Solicitors are employment law specialists, and following a brief chat, we can discuss your possible next steps.

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Unpaid Minimum Wage: Prominent Employers Found Underpaying Employees

Most people who work in the UK are entitled to the minimum wage. However, HMRC found around 518 employers had breached the minimum age requirements and had not paid their staff. Among these employers were names like Pizza Express, British Airways and the travel agency, TUI.

The press release by the Department of Business and Trade stated that nearly 60,000 workers had been left out of pocket due to unpaid minimum wage. According to the statement, Pizza Express had failed to pay 8,470 workers and owed over £760,000. British Airways, on the other hand, had not paid £231,276 to 2165 workers.

The named employers who have underpaid minimum wage have, since being identified, paid back the staff. The statement says these employers have faced up to 200% financial penalties for the underpayment.

“No Excuse to Undercut Workers”, Justin Madders MP

Labour’s Plan for Change prioritises growing economic and living standards in the UK, but this is not possible without financial stability. The only way to build on what the government prioritises is by ensuring more money goes to UK workers, strengthening their financial security.

Commenting on the issue of underpaid minimum wages, the Minister for Employment Rights, Justin Madders MP, says. “There is no excuse for employers to undercut their workers, and we will continue to name companies who break the law and don’t pay their employees what they are owed.”

Baroness Philipa Stroud, Chair of the Low Pay Commission, said that underpayment disadvantages many workers, leaving them out of pocket. She adds, “These naming rounds play an important part in ensuring that all workers receive their full wages and that they are aware there is support for them to ensure that they do.”

What is the National Minimum Wage and National Living Wage 2025?

As part of ensuring that workers are paid appropriately and no workers are underpaid the minimum wage, the rates increased earlier this year.

	National Minimum Wage	Annual Increase (£)
National Living Wage (21 and above)	£12.21	£0.77
18-20 years	£10.00	£1.40
16-17 years	£7.55	£1.15
Apprentices	£7.55	£1.15

While the increase has been welcomed by many, it is still unrealistic when it comes to the real living wage. The real living wage, set by the Living Wage Foundation, is calculated to reflect the actual cost of living in London as well as other parts of the UK. At the moment, the real living wage is £13.85 in London and £12.60 across the UK.

As per calculations by the foundation, a full-time worker on statutory rates is likely to earn £760 less than what they need. Hence, being underpaid minimum wage can put someone in a state of severe financial instability, with them being unable to support themselves.

Can I Make an Unpaid Minimum Wage Claim?

In the UK, the hourly rate for minimum wage depends on age. You are entitled to minimum wage if you are a worker or employee, and any contract for payment below minimum wage is not binding.

If you have a valid, binding contract that states you are to be paid minimum wage and are not being paid by your employer, you can make a claim for unpaid minimum wage. You can also bring a claim to the employment tribunal if unauthorised deductions were made from your wages or if you wish to challenge the amount you have been paid.

Bring a Claim to an Employment Tribunal

The first point of contact in such situations would be your organisation. Going to an employment tribunal is a lengthy process, and so it’s best to talk to the employer or check company policies. It may help to raise the issue informally with your employer, in case it is a genuine oversight and see if it can be resolved internally.

As per Acas, when informing your employer about unpaid minimum wage, it can help to

• Explain how much you’re owed and show any calculations you may have done
• Share evidence of unpaid wages (this could include old payslips, contract, timesheets, etc)
• Ask for a response/resolution within a specific time frame

If an informal chat does not help, you can raise a formal grievance as well.

Claiming Unpaid Minimum Wage in an Employment Tribunal

When bringing a claim to an employment tribunal, there are strict time limits to follow to ensure the claim is valid. Usually, you have three months minus one day to make a claim for unpaid wages. However, keep in mind –

1. If a single payment has been missed or is incorrect, you have three months minus one day from when you should have been paid
2. If there have been multiple missed or incorrect payments, then the deadline is three months minus one day from the most recent payment date.

Alternatively, you can also complain to HMRC for unpaid minimum wage. These complaints can be anonymous and also be made by a third party.

Not Paid Minimum Wage? Get in Touch Today!

Having your employer not pay you what you are owed can be stressful, however, we can help with that. Redmans Solicitors are employment law specialists, and our team of lawyers can answer your questions and provide expert advice.

To get started, please:

• Call us on 020 3397 3603
• Request a callback via our online form