Four Peterborough businesses named for allegedly underpaying staff national minimum wage

The four are among more than 600 employers nationally that have been named by the Government for under paying employers the national minimum wage to which they are legally entitled.

In total, the 658 companies that included DIY retailer B&Q and fast food chain Five Guys, have been fined £10.2 million for failing to pay the National Minimum Wage, according to the Department of Business and Trade that says £4 million has been returned directly to 27,000 workers.

The Peterborough businesses include Stars Day Nurseries of Park Road, which it is said underpaid £5,516.80 to six members of staff with each employee owed £919.47 between August 28, 2019 to July 13, 2023.

Its finance director Haider Ali said: “HMRC carried out an enquiry that covered almost four years that including the unprecedented challenges presented by the Covid-19 pandemic and its aftermath.

"It was identified that apprentices had not been transferred from the apprentice rate to the appropriate National Minimum Wage rate at the correct time following the completion of their apprenticeship period.

"We acknowledge this constituted a breach of the National Minimum Wage regulations.

"However, it was an administrative and process error and was not a deliberate attempt to underpay any staff.

“The error arose during an exceptionally challenging period for the business, when management resources and attention were necessarily focused on maintaining safe and continuous childcare provision, supporting staff and children, and meeting safeguarding requirements throughout the pandemic.

"As soon as the error was identified, it was corrected and the affected employees were paid all outstanding arrears.”

“All the employees affected continue to work for Stars Day Nurseries, with one having progressed into a management position.

"We take our responsibilities as an employer very seriously and pride ourselves on operating our business honestly, responsibly and transparently.

"We have reviewed our internal processes to reduce the risk of a similar administrative error occurring in the future.”

Also named by the government is the Prime Catering Company, trading as Shanghai Garden, in Lincoln Road, which it is claimed to have underpaid £1,144.09 to seven workers.

It means each member of staff was owed £163.44 with the underpayment dating between April 1, 2025 and March 31, 2025.

A spokesperson for Shanghai Garden said: “We are not arguing about it.

"Everything that needs to be paid has been paid. We’re not in the business of underpaying our staff.”

The third company to be named is leisure company Activity World, in Padholme Road East, which is said to have underpaid £7,417.91 to two members of staff.

This means each employee was owed £3,708.96 with the underpayment dating from between April 1, 2022 to June 30, 2022.

No one at the business was available to comment.

Also named was Alves iCare, in Pinnacle House, Lincoln Road, which is said to have underpaid £5,972.47 to four workers, which means each person is owed £1,493.12 with the underpayment dating between June 16, 2022 to April 15, 2023.

No one at the business was available to comment.

Minister for the Future of Work Kate Dearden said: “Underpaying your staff is illegal, and we will not let workers foot the bill for their boss failing to follow the rules.”