The Government has today [29 May 2025] named 518 employers that failed to pay their workers the legal minimum wage, collectively leaving nearly 60,000 people short-changed by more than £7.4 million. These businesses have since repaid what they owe and been hit with financial penalties of up to 200% of the underpayments.
This naming-and-shaming round, part of the wider Plan for Change, is the latest attempt to reinforce the Government’s message: underpaying workers will not be tolerated.
At FCSA, we welcome this enforcement action. Workers deserve to be paid correctly and on time. The vast majority of employers and service providers in our sector work hard to meet their legal obligations, and those who don’t should face meaningful consequences.
But this announcement also raises an important question: are we doing enough to prevent these failures before they happen?
The rise in National Minimum and Living Wage rates is a significant step in improving workers’ living standards. Yet as the numbers show, confusion or poor practice around pay calculations remains widespread.
That’s why robust, proactive compliance infrastructure is critical. At FCSA, we believe the future of fair pay lies not just in penalties after the fact, but in better systems, clearer guidance, and industry-led solutions.
Our own verification tools veriPAYE and Diligence Hub exist to support recruiters and umbrella companies in getting payroll right the first time. By creating real-time visibility and streamlining due diligence, these systems help ensure the rules aren’t just followed—they’re understood and implemented correctly across the supply chain.
A strong economy needs a strong compliance culture. Enforcement is a necessary tool, but prevention should be the goal. When workers are paid fairly and transparently, everyone benefits.
