'No excuse': Claims firm failed to pay minimum wage to 72 workers

A claims firm based in the north west has been named on a list of companies ordered to make good shortfalls in the national living and national minimum wage.

Equitas Solicitors from Preston failed to pay £15,412 to 72 workers over a period from 2016 to 2020, according to a list published by the Department for Business and Trade.

The 518 employers and businesses named have since paid back what they owe to staff and been fined up to 200% of their underpayment.

In a statement, Equitas said it takes its responsibilities as an employer very seriously and is committed to full compliance with all employment regulations, including the national minimum wage.

'The issue in question occurred over five years ago and was the result of an administrative error made by our then in-house qualified accountant. Salaries were calculated on a monthly basis but assessed against weekly pay periods, which led to a technical breach of the NMW regulations in certain weeks — a recognised and relatively common error in payroll accounting.

'As soon as the issue came to light, we conducted a full internal review, rectified the situation, and ensured that all staff were paid in line with NMW requirements. We also introduced strengthened payroll oversight measures to prevent a recurrence.

'We wish to make clear that this was an isolated, unintentional error with no attempt to underpay staff. Our employees are valued members of the team, and we remain committed to fair, transparent, and lawful employment practices.'

A second law firm, Bolton-based Forseti Law Ltd, is included on the list having failed to pay £1,403 to one worker. That firm closed in 2023 and the business is in liquidation.

Equitas Solicitors is a specialist in personal injury claims but also works in housing disrepair. According to its financial statements for the year ended 31 March 2024, the business employed 21 people and had net liabilities of £673,000. The firm had assets of around £1.17m but owed £1.8m within a year to creditors.

In total, nearly 60,000 workers who were underpaid in the UK from 2015 to 2022 have been repaid £7.4m following government intervention.

Justin Madders, minister for employment rights, said: ‘There is no excuse for employers to undercut their workers, and we will continue to name companies who break the law and don’t pay their employees what they are owed.’

The national living wage is now £12.21 an hour for those aged 21 and over and £10 for workers aged 18 to 20. Under-18s and apprentices must receive a minimum of £7.55 an hou