The Department for Business, Innovation, Science and Trade published its 24th naming round on 03 September 2026, identifying around 660 employers found to have paid staff below the legal minimum. Roughly £4m has been repaid to more than 27,000 workers, with penalties of about £7m issued on top. The list runs from national names such as B&Q, which owed £456,934.72 across 4,530 workers, down to single-site garages, and a number of dealerships, service centres, bodyshops and MOT businesses are included.
This is the first naming round since the Fair Work Agency began operating in April. As many will be aware, the FWA is part of the Labour Government’s flagship employment rights changes being brought in. The agency was created under the Employment Rights Act to bring enforcement of workers’ rights under one roof, and the government has said it will in time take on holiday pay and sick pay as well as the minimum wage. HMRC continues to carry out minimum wage enforcement on the agency’s behalf. Since naming began in 2011, more than £100m in penalties has been issued to over 5,200 employers, with more than £66m repaid to around 650,000 workers.
Business secretary Jonathan Reynolds said underpaying staff was no shortcut to success and that the government intended to stamp it out. Kate Dearden, minister for the future of work, urged every employer to check its payroll and to contact ACAS if further support is needed.
Why The Motor Trade Keeps Getting Caught
The 18 named motor trade firms in this round-up owed £44,589.48 between them, across 245 workers. Looking at the pattern in these figures, very few of them suggest deliberate wage theft. Small amounts spread across large numbers of workers is the signature of an administrative error rather than lots of rogue employers. The recurring causes in our experience are these:
- Unpaid working time. Technicians who arrive early to open up, sales staff who stay behind to close a deal, and anyone asked to attend a morning briefing before their shift starts are all working. If the clock only starts at the rostered time, the effective hourly rate drops.
- Deductions and required purchases. Money taken from wages for uniforms, branded workwear, safety boots or tools reduces minimum wage pay for the purposes of NMW calculations. So does a requirement that the worker buys these items themselves.
- Salary sacrifice. Pension top-ups, cycle to work schemes and car schemes all reduce the pay counted for minimum wage purposes. A worker close to the floor cannot sacrifice down through it.
What it Costs
Arrears are calculated at the rate in force when they are repaid, not the rate that applied when the underpayment occurred, so an old error becomes more expensive the longer it goes unnoticed. Penalties run to 200 per cent of the arrears, capped at £20,000 per worked (but are halved if payment is made within 14 days). Naming and shaming is arguably the bigger ‘cost’ in terms of reputation and can affect future business prospects or public opinion from customers.
The government has also committed to publishing naming lists more frequently, so the gap between an investigation concluding and a business appearing in the trade press is likely to shorten.
What To Do Now
Run a check on your payroll rather than waiting to be asked by an employee. Look at anyone paid at or near the minimum, list every deduction taken from their pay, and confirm that all working time is recorded. The government has published an educational bulletin alongside this round setting out the errors it found, and its Calculating the Minimum Wage guidance is the reference point for anything unclear.
Where you find an underpayment, correcting it yourself and repaying the worker is a far better position than being found out.
Members with concerns about their pay arrangements, or who have been contacted about a minimum wage investigation, should get in touch for advice.
As always, this advice is general in nature and should be tailored to the circumstances of any individual case. As an RMI member, you have access to the RMI legal advice line, as well as a range of industry experts who can assist you. If you find yourself facing any of the issues outlined above, please contact us at any stage for advice and support as appropriate.