Offshore staffing firms among HMRC’s shame list
LONDON, UNITED KINGDOM — The HM Revenue & Customs (HMRC) recently named several staffing firms, including Randstad Solutions, Gi Group, Staff 247, and Finecare 247, for failing to pay the National Minimum Wage (NMW) to their workers in the UK.
These companies were part of a list of 524 businesses that were ordered to repay nearly £16 million ($20 million) to their employees and faced significant fines.
This action comes ahead of a 9.8% increase in the National Living Wage, which will rise to £11.44 ($14.49) an hour on April 1.
The HMRC investigations, which covered the period from 2015 to 2023, found that these firms had underpaid their staff, affecting many workers financially.
Specific underpayment amounts included Randstad Solutions underpaying 5,348 workers by £123,505 ($156,000) and Gi Group Recruitment Ltd underpaying 2,110 workers by £17,055 ($21,600).
Staff 247 Limited owed £2,671.91 ($3,380) to 167 workers, but the exact amount Finecare 247 failed to pay was not disclosed.
A spokesperson for Randstad UK & Ireland said that the HMRC first brought this issue to their attention in 2017.
“When this situation was brought to our attention in 2017, our priority was to ensure workers were reimbursed within 14 days, which they were, and we updated our processes to ensure this issue did not happen again. The average value of underpayment to the individuals was around £20,” the spokesperson added.
In light of these findings, the government launched the National Minimum Wage Naming Scheme R20 Educational Bulletin on February 20 to guide employers on their NMW responsibilities, indicating a push for stricter compliance and transparency in wage practices.
A policy paper, jointly from DBT and HMRC, has also been updated, detailing the government’s approach to NMW enforcement.
