Hays Travel Named in UK Government’s List of 389 Companies Failing to Pay Minimum Wage

UK Government Targets Employers in Minimum Wage Crackdown

The UK government has publicly identified 389 employers for failing to pay the National Minimum Wage, a move signaling an intensified crackdown on non-compliant businesses. The Department for Business and Trade’s latest “naming round,” published on March 19, 2026, revealed widespread underpayment across various sectors, impacting tens of thousands of workers nationwide. This action underscores the government’s commitment to ensuring fair pay and comes ahead of the launch of a new enforcement body designed to strengthen worker protections.

Hays Travel’s Significant Underpayment Revealed

Among the employers named, Hays Travel Limited stood out for its substantial breaches. The travel giant failed to pay £364,103.51 to 2,463 workers, placing it sixth on the extensive list of 389 non-compliant businesses. This disclosure adds to the existing narrative around Hays Travel, which has recently been in the news for its business expansion, including reports that it “looks set to take over former Laurents Bakehouse unit in Maidenhead”. The scale of the underpayment at Hays Travel Limited highlights significant payroll oversights affecting a considerable portion of its workforce. Adding to the concern, former Hays franchisee Just Go Travel, now operating as Hays Travel North West, also appeared on the list. This associated company ranked 13th, having failed to pay £97,660.24 to 271 staff members. The combined impact of these breaches underscores a troubling pattern within the travel sector regarding minimum wage compliance.

Company Explains “Technical Issue” and Claims Rectification

In response to being named, a spokesperson for Hays Travel attributed the underpayment to a “technical issue in 2019”. The company asserted that it rectified the problem and repaid all affected employees as soon as the issue came to its attention. “We are committed to paying our people above National Living Wage,” a Hays Travel spokesperson stated, adding emphatically, “Everyone affected received the money they were owed”. The company’s swift action to address the shortfall, once discovered, aims to mitigate the reputational damage from its inclusion on the government’s list. However, the revelation still prompts questions about the robustness of internal payroll systems that allowed such a significant and prolonged underpayment to occur.

Broader Crackdown Reveals Widespread Non-Compliance

The government’s latest initiative uncovered a far-reaching problem beyond Hays Travel. Across the UK, the 389 named employers were found to owe over £7.3 million in back wages to approximately 60,000 workers. In addition to repaying their staff, these businesses collectively faced substantial financial penalties totaling £12.6 million. The Department for Business and Trade has made it clear that these “naming rounds” will become more frequent, signaling a sustained effort to pressure employers into strict compliance with minimum wage laws.

This strengthened enforcement regime will soon gain additional teeth with the launch of a new enforcement body, the Fair Work Agency, slated to begin operations on April 7, 2026. Business Secretary Peter Kyle minced no words regarding the government’s stance: “A good employer doesn’t build their business on the back of unpaid wages, and I look forward to working with the new Fair Work Agency to ensure its powers are used to crack down on those who think the rules don’t apply to them”. The list of named offenders was not limited to Hays Travel, including other prominent names such as ISS, Costa, Bupa Care Services, and Harvey Nichols, illustrating the breadth of non-compliance across various industries. Earlier reports had also highlighted similar issues, with one “Reading payroll firm failed to pay workers minimum wage”, indicating that the issue is not isolated.

Implications for Reputation and Payroll Compliance

The public naming of employers for minimum wage breaches carries significant reputational risks. For companies like Hays Travel, particularly given its size and visibility, being identified on such a list can erode public trust and potentially impact customer perception. While Hays Travel moved to rectify its “technical issue,” the incident serves as a stark reminder for all businesses about the critical importance of rigorous payroll compliance and transparent employee remuneration. With the impending launch of the Fair Work Agency and the promise of more frequent naming rounds, employers face increasing scrutiny. Businesses must prioritize robust internal systems to ensure accurate payment, safeguarding both their employees’ rights and their own corporate standing in an environment where enforcement is only set to intensify.

FAQ Section

Q1: What is the National Minimum Wage?
A1: The National Minimum Wage is the lowest hourly rate that most workers in the UK are legally entitled to be paid. Different rates apply depending on a worker’s age and whether they are an apprentice.

Q2: What happens to companies found to be underpaying staff?
A2: Companies found to be underpaying staff are typically required to repay all arrears to the affected workers and may also face significant financial penalties from the government. Additionally, they are often publicly named by the Department for Business and Trade.

Q3: How can employees report minimum wage violations?
A3: Employees who believe they are not being paid the National Minimum Wage can confidentially report their employer to HM Revenue & Customs (HMRC), which investigates such complaints.

What measures should companies implement to ensure ongoing National Minimum Wage compliance in light of these heightened government crackdowns?

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Related Topics: Hays Travel, Minimum Wage, UK Business