Claims firm under fire for failing to pay minimum wage to 72 staff

Equitas Solicitors among 518 firms ordered to repay staff and fined for underpaying workers

A claims management firm based in Preston has been publicly named for failing to pay the national minimum wage to dozens of its employees, according to a government list published this week.

Equitas Solicitors, which specialises in personal injury and housing disrepair cases, failed to pay £15,412 to 72 workers between 2016 and 2020. The breach was revealed as part of a crackdown by the Department for Business and Trade, which has ordered the underpayments to be repaid and issued fines to offending businesses.

The government confirmed that Equitas, along with 517 other companies, has since reimbursed affected staff and been hit with penalties of up to 200% of the original shortfall. The Gazette attempted to contact Equitas for comment, but the firm did not respond.

A second firm, Forseti Law Ltd based in Bolton, was also listed for failing to pay £1,403 to a single worker. That firm ceased trading in 2023 and is currently in liquidation.

The revelations place both firms in the spotlight during a time of heightened scrutiny of legal practices and employment standards. According to its most recent financial accounts, Equitas Solicitors employed 21 staff as of March 2024 and reported net liabilities of £673,000. While its assets were valued at £1.17 million, the firm owed £1.8 million to creditors due within a year.

Despite its financial instability, the firm has continued operations. However, the failure to pay minimum wage over a four-year period raises questions about how widespread the problem may be within small- to mid-sized legal practices.

Employment rights minister Justin Madders condemned the breaches and reaffirmed the government’s commitment to enforcing fair pay. “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,” he said.

The government’s wage enforcement efforts have recovered £7.4 million for nearly 60,000 UK workers underpaid between 2015 and 2022. Officials believe the true figure may be higher, as many vulnerable or junior employees—particularly in law firms and other professional services—might hesitate to report violations.

This is not the first time law firms have appeared on the minimum wage shame list, but the inclusion of Equitas, which operated for several years while allegedly underpaying staff, adds to concerns about employment practices in the legal sector.

As of April 2025, the national living wage stands at £12.21 an hour for those aged 21 and over. Workers aged 18 to 20 must be paid at least £10 per hour, while those under 18 or apprentices are entitled to a minimum of £7.55.

The Department for Business and Trade reiterated that firms must uphold wage laws regardless of financial pressure or industry type. “Being a law firm doesn’t exempt you from the law,” said one official involved in the enforcement action.

Industry observers suggest that the financial profile of Equitas—operating with substantial short-term debts—may indicate deeper structural problems within certain claims firms, particularly in high-volume, low-margin sectors such as personal injury and disrepair claims.

Although the money owed to workers has been paid back, the reputational damage may linger for Equitas and other named firms, particularly in an industry that depends on public trust and professional integrity.