More than 60 London-based employers have been publicly “named and shamed” by the government for failing to pay their staff the legal minimum wage. From small high-street outlets to larger firms, the newly released list exposes businesses that underpaid hundreds of workers by tens of thousands of pounds collectively. As the cost of living in the capital continues to soar, these breaches highlight the vulnerability of low-paid employees and raise pressing questions about enforcement, accountability and the true scale of wage underpayment in the city. This article breaks down the full list of 65 offending employers, examines how much they owe, and explains what the revelations mean for workers and businesses across London.
Key sectors and household names among Londons 65 minimum wage offenders
From high-street retail chains to late-night hospitality venues,the latest government list shows that wage underpayment is not confined to obscure or struggling firms.Among the 65 London employers named are familiar brands in fashion and footwear, franchised branches of fast-food giants, and well-known supermarket convenience outlets. The care sector is also prominent, with domiciliary care providers cited for failing to pay staff for travel time between visits, while smaller independent cafés, salons and takeaway shops crop up repeatedly for unpaid training hours, uniform deductions and miscalculated apprentices’ pay.
- Retail & supermarkets – underpayments linked to unpaid prep time and uniform costs
- Hospitality & fast food – staff not paid for closing shifts and cleaning after hours
- Care & support services – travel and overnight work not fully compensated
- Personal services – salons and gyms misclassifying staff or underpaying commission
| Sector | Example employer type | Common breach |
|---|---|---|
| Retail | High-street fashion chain | Uniform deductions pushing pay below legal rate |
| Hospitality | Branded fast-food franchise | Unpaid pre-opening and post-closing work |
| Care | Home care provider | Travel time and sleep-ins not fully paid |
| Services | Beauty salon | “Self-employed” roles masking minimum wage shortfalls |
How enforcement failures allowed widespread underpayment to persist
For years, the system designed to protect low-paid workers has been undermined by patchy oversight, limited resources and a complaints-led model that places the burden on staff who are often frightened to speak out. HMRC’s minimum wage enforcement team has been repeatedly criticised for slow investigations and modest penalties that many large employers simply treat as a cost of doing business. In practice, this meant that complex wage arrangements, unpaid training hours and opaque deductions were rarely scrutinised unless a whistleblower was prepared to take a personal risk. The result was a culture in which underpayment could continue quietly in the background while businesses maintained a veneer of compliance.
Inspectors also faced an uneven playing field, struggling to keep pace with sectors where casual, shift-based work and convoluted payroll systems are the norm. The data below illustrates how gaps in enforcement disproportionately affected particular industries and types of employers:
- Hospitality and retail relied heavily on variable hours and unpaid overtime, which frequently slipped under the radar.
- Small high-street chains lacked robust HR systems, leading to “accidental” underpayments that went unchecked for years.
- Migrant and young workers were less likely to challenge pay discrepancies, reducing the flow of complaints that trigger investigations.
| Sector | Common Breach | Impact on Workers |
|---|---|---|
| Hospitality | Unpaid prep & closing time | Longer shifts than paid for |
| Retail | Uniform & till shortages deducted | Hourly pay pushed below legal rate |
| Care work | Underpaid travel & sleep-in shifts | Entire weeks below minimum wage |
What underpaid workers in London need to know about their rights and remedies
Being paid less than the legal minimum is not just unfair, it is indeed unlawful.Every worker in the capital is entitled to at least the National Minimum Wage or National Living Wage, no matter how small the business or how “casual” the role. That right usually covers zero-hours staff,agency temps,interns who are actually doing real work,and many gig-economy roles. Employers also must not claw back wages through compulsory uniforms, unpaid training, or “admin fees” that push your pay below the legal rate. If your payslip is confusing or missing altogether,that’s a red flag: you have a right to a clear,itemised payslip that shows exactly what you’ve earned and what’s been deducted.
Workers who suspect they are being underpaid have several routes to challenge it-and you don’t have to confront your boss alone. You can:
- Keep your own records of hours worked, breaks missed and payments received.
- Use online calculators to check whether your hourly rate drops below the legal minimum.
- Raise the issue in writing with your employer and keep copies of all correspondence.
- Contact Acas, a trade union, or an employment law adviser for free, confidential guidance.
- Report your employer anonymously to HMRC, which can investigate and order back pay.
| Key Right | Who to Contact | Possible Outcome |
|---|---|---|
| Legal minimum pay | HMRC / Acas | Back pay + penalties for employer |
| Accurate payslips | Acas / Employment tribunal | Corrected pay and records |
| Protection from victimisation | Trade union / Solicitor | Compensation if treated unfairly |
Policy changes and compliance steps businesses must take to avoid future naming and shaming
For many employers,the fastest way to stay off future enforcement lists is to move from ad‑hoc payroll fixes to a codified,auditable pay policy. That means hard‑coding minimum wage checks into payroll software, ensuring every birthday, rate change and contract variation automatically triggers a review. HR teams should also formalise written pay progression policies, so staff know exactly when their rate rises and by how much, and conduct quarterly internal audits that compare rota data, overtime records and payslips. In sectors relying on uniforms, training or deducted accommodation, businesses must document these costs and ensure they never drag pay below the legal threshold. Clear paper trails not only protect workers, they also provide evidence if HMRC investigates.
- Automated age and rate tracking in payroll systems
- Quarterly minimum wage audits signed off by a senior manager
- Transparent deduction policies for uniforms, meals and accommodation
- Written contracts that spell out paid hours, training and overtime
- Staff education on payslips and how to spot underpayment
| Action | Owner | Frequency |
|---|---|---|
| Review all pay rates vs legal minimums | Payroll Lead | Monthly |
| Spot‑check payslips and time sheets | HR Manager | Quarterly |
| Train managers on wage rules | Compliance Officer | Annually |
At board level, the message must shift from treating underpayment as a technical slip to recognising it as a reputational risk with real commercial consequences. Senior leaders should assign a named compliance owner with the authority to halt problematic practices, from unpaid “trial shifts” to stretching contracted hours. Embedding wage compliance into supplier and franchise agreements is equally crucial; London brands that outsource cleaning, security or catering remain exposed if their partners cut corners. By weaving living wage and minimum wage guarantees into contracts, public tender bids and ESG reporting, businesses turn what was once a regulatory burden into a measurable standard of good governance-one that keeps their name out of the headlines and off future lists.
Insights and Conclusions
As the cost of living continues to rise, the stakes of wage underpayment have never been higher. This latest “name and shame” list is more than a headline-it is a reminder that legal obligations to workers are still being ignored across a broad spectrum of industries, from hospitality to retail.
For employees, it underlines the importance of knowing their rights and checking their payslips. For employers, it serves as a clear warning: the reputational and financial costs of non‑compliance are only increasing, and regulators are showing little tolerance for those who fall short.
Ultimately, whether this renewed spotlight leads to lasting change will depend on more than one enforcement round. It will rest on sustained scrutiny, stronger workplace cultures, and a shared recognition that the minimum wage is not just a legal floor, but a basic standard of fairness in one of the world’s most expensive cities.
