Car dealers named for failing to pay National Minimum Wage
Around 660 firms, including several car dealers, were publicly named for underpaying staff below the National Minimum Wage, prompting repayments and…
On 3 September 2026 the Department for Business, Innovation, Science and Trade published a list of about 660 employers that have underpaid staff below the National Minimum Wage. The list includes several motor trade businesses, meaning dealers face repayments, fines and heightened compliance scrutiny.
Key takeaways
- 660 firms were publicly named for breaching the National Minimum Wage.
- Dealers among them owe between £2,000 and £7,000 to workers.
- Employers repaid roughly £4 million and faced £7 million in penalties.
- Enforcement aims to protect staff and deter future underpayment.
Government enforcement action
The Department for Business, Innovation, Science and Trade said robust action forced employers to repay more than £4 million to over 27,000 workers. Penalties totalled around £7 million, reinforcing the legal obligation to pay the minimum wage.
These figures show the scale of the issue across the UK economy and underline the government’s commitment to tackling wage theft.
Automotive businesses identified
Among the motor trade firms named, Advance Motors Ltd (trading as Advance Vauxhall in Slough) owed £7,014.98 to 35 employees, the highest automotive total. The Tyre Store Ltd (Just Tyres) underpaid 173 workers by £6,717.02, and Reynolds Motor Group Service Centre Ltd in Southend‑on‑Sea owed a single worker £6,272.64.
Other dealers on the list include D & T Motors in Penryn, Automobile Repair Services in Rotherham, Auto‑Mech Cheddar Ltd, Autoplus (UK) Ltd, I Drive Automotive in Polegate, P J Automotive in Stoke‑on‑Trent, Ferrymill Motors in Glasgow, Keep it Cheap – Car Rentals (KIC Garage Services) in Wirral, and G&S Auto Centre in Cannock.
Official comments
Business Secretary Jonathan Reynolds said employers should see paying staff correctly as both the right and smart thing to do, noting the government will work with businesses to provide guidance. He added that short‑changing staff is not a shortcut to success.
Minister for the Future of Work Kate Dearden warned that underpaying staff is illegal and that workers will not be left to foot the bill. She urged employers to check payrolls and seek advice from Acas if needed.
What this means for dealers
Dealers must review payroll systems promptly to confirm all staff receive at least the National Minimum Wage. Failure to do so could result in further repayments, steep penalties and reputational damage, especially as the government continues to publish named and shamed lists.
Proactive compliance, including regular wage audits and engaging with adviser services such as Acas, can mitigate risk and reassure customers that the business adheres to legal and ethical standards.
Frequently asked questions
What penalties can a dealer face for underpaying the National Minimum Wage?
Dealers found to underpay can be required to repay the shortfall to affected workers, face fines that may exceed the amount owed, and be publicly listed by the Department for Business, Innovation, Science and Trade. Penalties in the recent round amounted to about £7 million across all firms.
How can dealers ensure payroll compliance after the latest enforcement?
Dealers should conduct an immediate audit of all staff wages, confirm rates meet the current National Minimum Wage thresholds, and adjust any discrepancies. Seeking guidance from Acas, using up‑to‑date payroll software, and maintaining clear records will help demonstrate compliance and avoid future sanctions.
Which automotive firms were the biggest underpayers on the list?
Advance Motors Ltd (Advance Vauxhall) in Slough owed the most, with £7,014.98 due to 35 workers. The Tyre Store Ltd (Just Tyres) underpaid 173 employees by £6,717.02, and Reynolds Motor Group Service Centre Ltd in Southend‑on‑Sea owed a single employee £6,272.64.