Any employer not paying the correct amount can be fined by HMRC.
In June 2023, the previous Conservative government said that more than 200 firms had been fined a total of nearly £7m.
They were told to reimburse 63,000 workers for failures over several years.
The companies included Marks and Spencer, Argos and Lloyds Pharmacy. WH Smith was the worst offender, having failed to pay more than £1m to more than 17,600 workers.
Those who don’t qualify for the National Minimum Wage and National Living Wage include the self-employed, company directors, volunteers, members of the armed forces and prisoners.
People with disabilities or in long-term unemployment who take part in government work programmes are paid fixed amounts at different stages of the scheme.
These are less than the equivalent National Minimum or Living rate.
