Capita, Pizza Express, and Lidl Listed for Minimum Wage Violations

Capita, Pizza Express, and Lidl are among over 500 companies flagged by the government for violations of employment law, resulting in tens of thousands of employees receiving less than the legally mandated minimum wage.

The Department for Business and Trade published a list identifying 518 employers who collectively compensated nearly 60,000 workers, amounting to a repayment of £7.4 million.

This list was generated following investigations conducted by HM Revenue & Customs from 2015 to 2022. In addition to repayment, the companies named also faced financial penalties of up to 200% of the total amount they underpaid.

The minimum wage, referred to as the national living wage for individuals over 21, was established over two decades ago and increased to £12.21 per hour in April.

Justin Madders, the minister responsible for employment rights, emphasized, “There is no justification for employers to shortchange their workers. We will persist in naming businesses that violate the law and fail to compensate their employees fairly.”

Capita, a key outsourcing contractor for the government, topped the list for improper payments, affecting 5,543 employees and totaling £1.15 million in due wages. The company attributed these “inadvertent underpayments”—which occurred between 2015 and 2021—to several factors, including the inclusion of an additional 25 minutes per week for call center employees to log in prior to their shifts.

A spokesperson for Capita stated, “Our processes and systems have been revised to prevent future discrepancies, and we have maintained diligent oversight. We have ensured that all owed amounts were repaid promptly.”

Pizza Express restaurant logo in London.

Pizza Express, known for its restaurant chain, was reported for underpaying a total of £760,701 to 8,470 employees. Upon recognizing the “historic unintentional technicality” from 2012 to 2018, the company quickly worked to identify affected individuals, extend an apology, and rectify the issue.

British Airways, a subsidiary of International Consolidated Airlines, also made the list due to underpaying 2,165 workers by £231,276, primarily affecting cabin crew members who joined between 2014 and 2017 during their initial two months of employment. British Airways remarked, “We apologized and issued backdated payments several years ago.”

Lidl, a discount grocery chain, was cited for failing to pay 3,423 employees a total of £286,437, while Halfords, a retailer specializing in motor parts and bicycles, underpaid 4,341 of its workers by £140,829.

Additional companies identified include travel operator Tui, holiday parks provider Parkdean Resorts, and CDS Superstores, operating as The Range.

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