A new UK Government list has named employers in Wales that failed to pay staff the legal minimum wage, ordering them to repay workers in full and face financial penalties. The move forms part of a nationwide enforcement drive that aims to deter underpayment and uphold the National Minimum Wage and National Living Wage across the UK. Welsh workers affected will receive arrears, and businesses face fines that can reach twice the amount owed. Officials say the list highlights common payroll errors as well as more serious breaches, and they urge employers to check their systems. Worker groups call the action a reminder that pay rights are enforceable and that staff can seek help if they think their pay falls short.
The list, published by the UK Government on Thursday 16 October 2025, includes employers operating in Wales across several sectors. It follows investigations by HM Revenue & Customs (HMRC), which enforces minimum wage law. The department says it will continue to publicise breaches to warn others and encourage compliance.
Context and timing
The UK Government named the latest group of employers on Thursday 16 October 2025, as part of a wider UK release. The announcement covers employers based in Wales, alongside firms elsewhere in the UK, identified through HMRC investigations over recent years. The enforcement regime runs year-round, with periodic public updates to maintain pressure on non-compliant employers.
Welsh employers featured in UK enforcement round
The UK Government’s list features companies and organisations that operate in Wales and were found to have underpaid workers. While cases vary, they reflect issues seen across the UK, including in hospitality, retail, social care, and services. Officials emphasise that naming aims to correct underpayment and deter repeat issues.
HMRC investigated the cases, assessed arrears, and ordered repayment to affected workers. In addition, the government imposed penalties under the minimum wage rules. Public naming does not replace enforcement; it adds a reputational sanction to financial consequences. The policy has existed for years and sits alongside guidance and support that HMRC and the Advisory, Conciliation and Arbitration Service (Acas) provide to employers and workers.
How the penalties and repayments work
Under minimum wage law, employers must pay back what they owe in full. HMRC can also levy a financial penalty, which can reach up to 200% of the arrears, subject to legal caps. The penalty model aims to make underpayment a costly error and to protect fair competition. Officials say consistent enforcement supports compliant employers who already meet or exceed the legal rates.
Arrears can build up in ways that may not seem obvious at first. For example, deductions from pay for items like uniforms, tools, or administration fees can push hourly pay below the legal minimum. Unpaid time for tasks, such as training, staff meetings, or travel between client sites, can also lead to breaches. HMRC investigates these issues and takes action where it finds non-compliance.
Common reasons employers fall foul of the law
Government updates and HMRC guidance show recurring causes of underpayment. These include failing to increase pay when legal rates rise each April, or when a worker moves into an older age band. Other frequent problems involve not paying for all hours worked, such as time spent opening or closing, completing training, or travelling within shifts.
Deductions also cause breaches. If a worker must buy a uniform or cover certain costs, and the employer does not top up wages to account for that, the net pay can fall below the minimum. Mistakes in recording hours, misclassifying someone as self-employed when they qualify as a worker, and confusion over apprenticeships and training rates also appear often in enforcement cases.
Impact on workers and business practices in Wales
When wages fall short, workers lose essential income. For some, arrears can cover long periods, and repayments make a clear difference to household budgets. Public naming gives transparency to the process and signals that rights exist in practice, not just on paper. Worker advocates say it also encourages staff to check payslips and to raise issues early with employers or with HMRC.
For employers, enforcement brings direct costs and reputational damage. It can also prompt better payroll systems. Business advisers regularly urge firms to audit timekeeping, ensure rate changes are applied on time, and train managers in basic wage rules. In Wales, as across the UK, this is particularly important in sectors with varied shifts, complex rostering, and uniforms or equipment costs.
What employers should check now
Employers can reduce risk by reviewing payroll processes. Key checks include:
- Confirming current legal rates apply to all eligible workers.
- Ensuring age-related and annual rate changes are applied on time.
- Paying for all working time, including mandatory training and travel within shifts.
- Reviewing deductions and equipment or uniform policies to avoid falling below legal rates.
- Ensuring apprentices receive the correct rate and step up when they finish their first year or reach the relevant age.
HMRC provides clear guidance on these points. Acas also offers free advice to help employers understand the rules. Many breaches arise from oversight, but enforcement does not distinguish between error and intent when it comes to back pay. The law requires employers to make workers whole, and penalties apply when the law is broken.
Workers’ rights and how to seek help
Workers who believe their pay falls below the legal minimum can seek confidential advice. Acas offers guidance on pay rights, and HMRC investigates complaints. Workers can raise concerns without fear of losing their job because the law protects them from unfair treatment for asserting wage rights. They can request payslips, check hours recorded, and compare pay with the legal rates.
If a worker brings a complaint, HMRC can order arrears to be repaid and issue a penalty. In serious or repeated cases, the authorities can pursue further sanctions. While most cases end with civil enforcement and repayment, the system allows for stronger action where needed. Workers do not pay to use HMRC’s enforcement process.
A long-running drive to deter underpayment
The UK Government began public naming of minimum wage offenders more than a decade ago. It has since updated the rules to focus on meaningful arrears and clearer guidance. Officials say the approach helps educate employers and delivers direct financial redress to workers. Enforcement runs alongside efforts to raise awareness among small firms and to reduce payroll mistakes.
In Wales, the latest list adds to a picture seen across the UK. The majority of businesses comply with the law, but underpayment still arises far too often, according to HMRC updates. Public naming keeps pressure on employers to check their practices and sends a signal that non-compliance carries a cost.
Wrap-up
By naming Welsh employers that underpaid staff, the UK Government has reinforced a clear message: pay the legal minimum, pay for all hours worked, and avoid deductions that push wages below the line. Workers will receive arrears, and businesses will face financial penalties. The action also offers a practical reminder to review payroll systems, update rates on time, and train managers who approve shifts and expenses. As enforcement continues, more firms will audit their practices to prevent errors, while workers who suspect underpayment can seek advice and file a complaint. The coming months will show whether public scrutiny and penalties change behaviour in the sectors most at risk and deliver stronger compliance across Wales and the wider UK.
