“Naming and shaming”: UK government targets companies including Estée Lauder for failing to pay minimum wage

26 Feb 2024 --- More than 500 companies — including Estée Lauder — are targeted by the UK government for not paying workers the National Living Wage. 

The investigations by HM Revenue & Customs span from 2015 to 2023 and found that 524 businesses failed to pay the minimum wage, so employers were collectively ordered to repay workers more than £16 million (US$20 million), plus an additional financial penalty. 

The breach of national law impacted 172,000 workers, some of whom faced deductions in their pay to cover costs ranging from uniforms, PPE and food to childcare and training, according to the tax authority.

“Naming and shaming” companies
In the widespread investigation, Estee Lauder’s Westminster-based business was targeted for not paying about £900 thousand to almost 6000 workers. It was the third worst offender behind recruitment company Staffline and casino and bingo owner Rank Group.

Members of ELC’s executive leadership team with Springer Nature team members, the United Nations and the 2023 winners of the Nature Awards for Inspiring Women in Science.Personal Care Insights contacted the company for comment and is awaiting a response. 

According to the government’s website, the companies paid back what they owed workers and faced financial penalties of up to 200% of their underpayment.

The Department of Business, Trade and Industrial Strategy did not disclose the amount companies were fined for breaching the UK law due to privacy rights. Still, it acknowledged the “naming and shaming” strategy was aimed at sending “a message that no employer is exempt from paying their workers that statutory minimum wage.”

Increasing UK Living Wage
The UK’s Living Wage is currently £10.42 for workers 23 and older, but in April, it will jump 9% to £11.44 for most workers, as previously announced in the government’s Autumn statement. 

Last month, some shareholder activists targeted another UK retailer, Boots, claiming the drugstore giant was not paying its employees a real living wage.

We spoke to Sara Murphy of The Shareholder Commons in the US and Dan Howard of ShareAction in the UK about their ongoing mission to get companies, precisely Boots’ parent company, Walgreens Boots Alliance, to create policies where workers would get “a decent wage from day one.” 

For workers who believe they are underpaid, the government has more information about their rights under UK law and guidance for employers to help carry out “necessary checks.”

By Anita Sharma