Home / Business and Economy / Top Firms Caught Underpaying Workers Millions
Top Firms Caught Underpaying Workers Millions
19 Mar
Summary
- 400 UK employers, including KPMG and Harvey Nichols, underpaid staff.
- Firms owe £7.3m to 60,000 workers; £12.6m in fines issued.
- New Fair Work Agency to address compliance issues next month.
Over 400 UK employers, including major entities like KPMG and Harvey Nichols, have been found to have underpaid their workers, falling short of the national minimum wage. The Department for Business and Trade revealed that these employers owe approximately £7.3 million to around 60,000 staff. In response, fines amounting to £12.6 million have been imposed on 389 of these businesses.
Notable companies named include Costa, Hovis, Norwich City and Charlton Athletic football clubs, and Walsall Council. Some firms, such as ISS, attribute the breaches to unintentional errors in pay calculations, while KPMG cited minor process errors. Harvey Nichols stated that 83 workers were underpaid a total of £7,537.
Many small businesses are among those identified, often with a few employees suffering significant financial losses. These breaches are particularly common in sectors like care homes and childcare, but also affect construction, hospitality, and garment manufacturing. The government is strengthening workers' rights and will launch a new Fair Work Agency next month to enhance enforcement, addressing concerns about previous compliance failures.
