Sunderland-based Hays Travel has issued a statement after being named by the Government for underpaying more than 2,400 workers by over £364,000.
The UK’s largest independent travel agent was included in a government list published by the Department for Business and Trade, which identified 389 employers nationwide who failed to pay staff the legal minimum wage.
According to the findings, Hays Travel Limited underpaid £364,103.51 to 2,463 workers.
The case forms part of a wider crackdown that saw businesses ordered to repay more than £7.3 million to nearly 60,000 workers, alongside £12.6 million in financial penalties.
In response, Hays Travel said the underpayment was caused by a historic payroll issue and stressed that all affected employees have since been reimbursed.
A spokesperson for the company said: “We are committed to paying our people above the National Living Wage.
"These instances of underpayment happened because of a technical issue in 2019, which we rectified as soon as we became aware of it.
"Everyone affected received the money they were owed.”
The company accounted for the majority of underpaid wages among 11 North East employers named in the latest enforcement action, which together underpaid workers by more than £500,000.
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.
Business Secretary Peter Kyle said the crackdown should serve as a warning to employers.
“The vast majority of businesses in this country do the right thing by paying their staff properly and playing by the rules.
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"It’s not fair to them when others can get ahead by not paying the wages their workers are owed,” he said.
The Government said all affected workers have now been repaid and that enforcement action will continue, with the new Fair Work Agency set to launch next month under the Employment Rights Act.
The announcement also comes ahead of an increase in the National Minimum Wage, with full-time workers aged 21 and over expected to see an annual pay rise of around £900 from April.
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