WHSmith, Marks and Spencer, and Lloyds Pharmacy are among a list of over 200 companies pulled up by Revenue and Customs (HMRC) for breaking minimum wage laws.

Investigations by HMRC from 2017 found the retailers were among a group with around £5 million in outstanding pay due to around 63,000 employees.

HMRC found that WHSmith was the worst offender, failing to pay over £1 million to around 17,600 workers, and has ordered the stationer to pay staff what they are owed along with a fine of almost £7 million.

Lloyds came in second place, failing to pay in excess of £900,000 to around 7,000 staff, and Marks and Spencer, failing to pay almost £600,000 to more than 5,000 workers, came in third.

Under its investigation, HMRC revealed that 39 per cent named employers deducted pay from workers’ wages, 39 per cent failed to pay workers correctly for their working time, and 21 per cent paid the incorrect apprenticeship rate.

“Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff,” said minister for enterprise, markets and small business Kevin Hollinrake. “Most businesses do the right thing and look after their employees, but we’re sending a clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences.”

Retail Systems has reached out to the companies named for comment.

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