Invest Zones

Agents caught paying workers low wages

 ·  By Safwah Basri
Agents caught paying workers low wages - estate agents
Agents caught paying workers low wages

More than 600 UK businesses, including estate agents and property firms, have been publicly named by the government for failing to pay workers the minimum wage. The employers have been ordered to repay around £4m to more than 27,000 workers who received less than they were legally entitled to.

The businesses responsible also face combined penalties of around £7m, according to the Department for Business and Trade. This latest naming round forms part of the government’s enforcement of National Minimum Wage rules and its move towards publishing details of offending employers more regularly.

Since the naming scheme began in 2011, more than 5,200 employers have faced penalties totalling over £100m. Around £66m has been repaid to 650,000 workers over the same period. Business secretary Jonathan Reynolds said: “The best businesses know that looking after your workers isn’t just the right thing to do, it’s the smart thing to do, building the stronger, more successful businesses that drive growth in every postcode.

“Most employers already understand this, and I want to work with them to ensure they have every piece of guidance and support available to help them follow the rules. Short-changing your staff isn’t a shortcut to success and we are determined to stamp it out.” The minister for the Future of Work Kate Dearden commented: “Underpaying your staff is illegal, and we will not let workers foot the bill for their boss failing to follow the rules.

The Fair Work Agency, a brand-new enforcement body, was formed through the recently passed Employment Rights Act to bring workers’ rights enforcement under one roof for the first time. Chair of the Fair Work Agency Advisory Board Matthew Taylor said: “The Fair Work Agency is here to make it easier for employers to understand and meet their responsibilities, while taking firm action where workers are denied the pay they are legally owed.

This naming round is an important reminder that paying the minimum wage is not optional — it is the law. Most employers want to do the right thing, and they will support them to comply, but those who fall short should expect robust enforcement to protect workers and maintain a fair playing field for responsible businesses.” The list of employers being named for failing to pay the National Minimum Wage includes B&Q LIMITED, Elysium Healthcare Holdings 3 Limited, and St George’s, Epsom and St Helier Hospital Group.

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Some of the other businesses on the list include Forest Holidays Limited, which failed to pay £100,308.68 to 598 workers, and Five Guys JV Limited, which failed to pay £54,6 to workers. The total amount owed to workers by these businesses is around £4m.

In comparison to past cases, the current situation highlights the need for continued enforcement of minimum wage rules. The government’s efforts to name and shame non-compliant employers serve as a reminder that paying the minimum wage is a legal requirement, not a suggestion.

The UK government website provides guidance for employers on how to comply with the National Minimum Wage rules. Employers are urged to check their payroll, review their processes, and correct any mistakes to ensure that every worker receives the pay they are entitled to.

The Fair Work Agency will play a significant role in enforcing workers’ rights, including the payment of minimum wage, holiday pay, and sick pay. As the agency moves forward, it is likely that more businesses will be held accountable for their actions, and workers will receive the pay they deserve.

Jonathan Reynolds also emphasized the importance of estate agent compliance with minimum wage laws.

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