Hays Travel blames ‘technical issue’ for minimum wage underpayment

Hays Travel has blamed a “technical issue” in 2019 for a series of minimum wage underpayments and said it rectified the shortfall “as soon as it became aware of it”.

The statement came after Hays Travel and Just Go Travel were named by the government as among almost 400 firms for failing to pay staff the minimum wage.

The UK’s largest travel agency group failed to pay £364,103.51 to 2,463 workers, the Department for Business and Trade (DBT) disclosed.

The company was sixth in a list of 389 employers named by the government.

Former Hays franchisee Just Go Travel, which was acquired in 2023 and now trades as Hays Travel North West, was identified as 13th in the list for failing to pay £97,660.245 to 271 staff.

The Midcounties Co-operative was also listed for failing to pay £57,775.07 to nine workers.

The DBT told the 389 firms to repay £7.3 million in wages owned to workers.

New figures show a total of around £12.6 million in penalties have been issued to the 389 employers, with fines coming on top of the repaid wages.   

A spokesperson for Hays Travel said: “We are committed to paying our people above 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.”

Just Go Travel was unable to comment as it is a dormant company and no longer trading.

Employment rights minister Kate Dearden said: “Nobody should finish a week’s work and find they’ve been paid less than they’ve earned. I believe in a fair day’s pay for a fair day’s work. 

“That’s why we’re cracking down on employers who underpay. We’re making sure workers get the hard earned pay they deserve.  

“I encourage every employer to check their payroll to ensure they don’t get caught out.” 

The announcement came ahead of further increases to the minimum wage, which will see the lowest earners over 21 years old receive an annual pay rise of £900 for those working full time.