Workers to receive millions after being underpaid by employers

Workers to receive millions after being underpaid by employers

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HM REVENUE AND CUSTOMS HAS FORCED EMPLOYERS TO REPAY A TOTAL OF £7.4MILLION TO 59,000 MEMBERS OF STAFF AFTER INVESTIGATIONS FOUND THEY HAD BEEN UNDERPAID 13:59, 02 Jun 2025Updated 13:59, 02


Jun 2025 Thousands of workers who have been short-changed are set to receive a collective repayment of over £7.4 million. This is the outcome of HM Revenue and Customs (HMRC) investigations


that ran from 2015 to 2022 and identified 518 employers and businesses as having underpaid close to 60,000 staff members. It includes more than 20 Welsh companies. These employers have since


settled their debts with employees and have also been slapped with financial penalties that could reach up to 200% of the owed amount. This restitution arrives in the wake of the minimum


wage increasing by 6.7% this April. The hike has seen the hourly minimum wage for those aged 21 and above rise from £11.44 to £12.21, while those between 18 to 20 years old saw an increase


from £8.60 to £10, and under-18s and apprentices from £6.40 to £7.55 per hour. _For money-saving tips,__ sign up to our Money newsletter here_. The boost comes alongside a major upgrade to


the National Living Wage and National Minimum Wage, which has effectively put an extra £1,400 in the pockets of full-time workers on the National Living Wage and provided substantial support


to millions of families throughout the nation. Alongside this, there has been the introduction of the most consequential enhancements to workers' rights in decades through the


Employment Rights Bill. Commenting on the issue, Minister for Employment Rights Justin Madders stated: "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.", reports the Mirror. Article continues below He further emphasised government commitments,


saying that "Ensuring workers have the support they need and making sure they receive a fair day's pay for a fair day's work is a key commitment in our Plan for Change. This


will put more money in working people's pockets, helping to boost productivity and ending low pay." Baroness Philippa Stroud, Chair of the Low Pay Commission, remarked: "We


welcome today's publication. Underpayment leaves workers out of pocket and disadvantages the majority of employers who do abide by the rules. "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 TO DO IF YOU'VE BEEN UNDERPAID To


determine if you've been underpaid, scrutinise your payslips against the current minimum wage rates. If your wages appear short, firstly approach your employer to seek a resolution.


Failing that, lodge a complaint with HMRC via GOV.UK, who will examine your case and ensure any owed pay is reimbursed. Should an employer default on payment, HMRC can issue an arrears


notice plus a penalty for not observing the minimum wage requirements. In extreme cases where an employer continues non-compliance, HMRC can initiate court proceedings on the worker's


behalf. Additionally, employees can report underpayment by contacting the Advisory, Conciliation and Arbitration Service (ACAS) via their pay and work rights helpline at 0300 123 1100.


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