Employers fined unprecedented £14 million for not meeting legal obligations

Her Majesty’s Revenue and Customs (HMRC) achieved record enforcement results this year, identifying £15.6million of underpayments.

The number of workers identified as underpaid was double that in 2016/17 and the highest number since the National Minimum Wage came into force.

In every case, the government instructs employers to repay their workers and enforces the return of the missing cash.

The rise in cases follows increased efforts by HMRC to promote compliance and improve employer awareness of the minimum wage.

Business Minister Kelly Tolhurst, said:

We are dedicated to stopping underpayment of the minimum wage. Employers must recognise their responsibilities and pay their workers the money they are entitled to.

The UK’s lowest paid workers have had the fastest wage growth in 20 years thanks to the National Living Wage and today’s figures serve as a reminder to all employers to check they are getting their workers’ pay right.

Over the past year, 56 employers took advantage of a HMRC pilot scheme where employers were encouraged to come forward outside of an investigation. This resulted in nearly £250,000 in arrears being declared for just under 700 workers.

The year also set a new record for penalties issued by the government, with £14 million in fines issued to employers.