Eleven North East businesses have been named and shamed by the Government after failing to pay workers the legal minimum wage, with more than £500,000 owed to staff across the region.
The companies were included in a nationwide list of 389 employers that underpaid almost 60,000 workers a total of £7.3 million.
Employers have since been ordered to repay the wages and face £12.6 million in penalties.
In the North East alone, workers were underpaid by a combined £507,308.
Sunderland-based Hays Travel Limited accounted for the majority of the total, failing to pay £364,103.51 to 2,463 workers.
The company said the issue was caused by a technical error in 2019, which was corrected once identified, with all affected staff reimbursed.
Other firms named include Vocare Limited in Newcastle, which underpaid £73,744 to 621 workers, and HC-One Limited in Darlington, which failed to pay £45,336.99 to 2,587 workers.
Smaller businesses were also listed, including The Station Hotel (Newcastle) Limited (£14,391.72 owed to 90 workers) and NSS Safety Supplies Limited in Middlesbrough, which underpaid £2,885.61 to a single worker.
The full list of North East employers named includes:
- Hays Travel Limited, Sunderland, SR1, failed to pay £364,103.51 to 2,463 workers
- Vocare Limited, Newcastle Upon Tyne, NE12, failed to pay £73,744.00 to 621 workers
- HC-One Limited, Darlington, DL3, failed to pay £45,336.99 to 2,587 workers
- The Station Hotel (Newcastle) Limited, Newcastle Upon Tyne, NE4, failed to pay £14,391.72 to 90 workers
- NSS Safety Supplies Limited, Middlesbrough, TS2, failed to pay £2,885.61 to 1 worker
- Mr Richard Nicholas Taylor, Newcastle Upon Tyne, NE19, failed to pay £2,093.74 to 2 workers
- Panda Motor Vehicles Ltd, Sunderland, SR2, failed to pay £1,730.28 to 1 worker
- Holmside Park Limited, Durham, DH7, failed to pay £1,076.11 to 3 workers
- SNE Care Services Ltd, Middlesbrough, TS6, failed to pay £826.26 to 1 worker
- Durham Road Pizza Ltd, Gateshead, NE8, failed to pay £692.05 to 6 workers
- Blue Bistro Ltd, South Shields, NE33, failed to pay £454.74 to 18 workers
Business Secretary Peter Kyle said the enforcement action sends a clear message to employers.
“The vast majority of businesses in this country do the right thing by paying their staff properly and playing by the rules. It’s not fair to them when others get ahead by not paying the wages their workers are owed,” he said.
“A good employer doesn’t build their business on the back of unpaid wages.”
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Employment Rights Minister Kate Dearden added that workers must receive “a fair day’s pay for a fair day’s work” and urged employers to check their payroll systems to avoid breaches.
The naming round comes ahead of the launch of the new Fair Work Agency on April 7, which will bring together enforcement of workers’ rights under one body with stronger powers.
The Government also confirmed that minimum wage rates will rise again from April, with full-time workers aged 21 and over set to see their annual earnings increase by around £900.
Officials say the crackdown is part of wider efforts to support low-paid workers during the cost-of-living crisis and ensure employers comply with the law.
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