Over 200 firms named and shamed over not paying minimum wage

The government today revealed more than 200 firms, from multinationals to sole traders, who fell short of paying their employees the minimum wage.

The 208 businesses, including House of Fraser and Waterstones, have been ordered to repay workers and face penalties of nearly £2 million after breaches left around 12,000 workers out of pocket to the tune of £1.2 million.

Greencore, which makes sandwiches for retailers such as M&S, and Tangerine Confectionery Group, are also on the list.

Two Tameside retailers, Aingaran Somasuntharam of Londis and Mahmood Raja of Premier Stores, have been named for failing to pay £1,951.98 to 14 workers and £1,847.89 to 1 worker respectively. David Patrick, of D C Patrick Newsagents in Suffolk, is in the list for failing to pay £565.48 to 10 workers.

These businesses have since had to pay back what they owe to staff and also face significant financial penalties of up to 200% of what was owed, which are paid to the government. The investigations by HM Revenue and Customs concluded between 2014 and 2019.

“We want workers to know that we’re on their side and they must be treated fairly by their employers, which is why paying the legal minimum wage should be non-negotiable for businesses,” Business Minister Paul Scully said.

“With Christmas fast approaching, it’s more important than ever that cash is not withheld from the pockets of workers. So don’t be a scrooge – pay your staff properly.”

Among the employers named today, over one third (37%) previously underpaid workers with deductions that reduce minimum wage pay, for example, workers out of pocket to comply with the dress code.

Unpaid working time such as mandatory training, trial shifts or travel time (29%), failing to pay the correct rate to apprentices (16%) and not increasing NMW pay in line with government rises, or paying the wrong minimum wage rate, e.g. paying a 23 year old the 21-22 year old rate (11%) are the other major lapses found on part of the employers.

“Whilst not all minimum wage underpayments are intentional, there is no excuse for underpaying workers,” the Department of Business said in a statement adding that clear guidance for employers on pay is available on gov.uk webiste. The government has also published additional advice today about breaches and the steps employers should take to make sure they pay their workers correctly.

The National Living Wage will see a significant rise from April 2022, with a 6.6 per ccent increase to £9.50 an hour.