Walsall Council has been publicly named after an investigation uncovered that it failed to pay 36 employees the national minimum wage, resulting in missed wages totaling £21,890.67.
The Department for Business and Trade (DBT) conducted the investigation, which found the council had not met its legal obligation to pay the minimum wage – currently set at £12.21 per hour for workers aged 21 and over, with an impending increase to £12.71 per hour next month.
In response, Walsall Council promptly reimbursed all affected staff through the next payroll cycle. A council spokesperson stated, “Walsall Council accepted all determinations following the HMRC investigation. All outstanding payments were made at the earliest possible opportunity, amounting to £21,890.67. HMRC also acknowledged the council’s cooperation throughout the investigation.”
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Walsall Council, which employs around 3,000 people, ranked 33rd among 389 employers named in the DBT’s list for underpayment violations. Notably, it was the only local authority featured on the list.
The government has imposed penalties totaling £12.6 million on all offending employers in addition to the unpaid wages.
Other regional businesses cited in the report include Busy Bees Nurseries Ltd in Burntwood, which underpaid 9,056 workers by £485,374.05 (ranking fourth), and Jooced Custom Sound & Vision Ltd in Wolverhampton, which underpaid five workers by £13,986.67 (ranking 51st).
Business Secretary Peter Kyle emphasized the importance of fair pay, saying, “A good employer doesn’t build their business on the back of unpaid wages. We will work with the new Fair Work Agency to ensure enforcement against those who disregard the rules.”
Employment Rights Minister Kate Dearden added, “No one should finish a week’s work and be paid less than they earned. We are intensifying efforts to crack down on underpayment and encourage employers to audit their payrolls to avoid penalties.”