[UK] Government names 200 companies that failed to pay minimum wage

In the UK, over 200 employers have been named by the government for failing to pay minimum wage to their lowest-paid staff, GOV.UK reports.

In a clear breach of the National Minimum Wage (NMW) law, 202 employers were found to have failed to pay their workers almost £5 million. Around 63,000 workers were underpaid.

Companies named in the list, released on June 21, reportedly ranged from major high street brands to small businesses and sole traders, in a lesson from the government that no employer is exempt from paying their workers the statutory minimum wage.

Kevin Hollinrake - Minister for Enterprise, Markets and Small Business - said, “Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff.

“Most businesses do the right thing and look after their employees, but we’re sending a clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences.”

The businesses named in the list have repaid what they owe to their staff and have also faced financial penalties. The HMRC investigations were reportedly concluded between 2017 and 2019.

The named employers had underpaid workers in the following ways:

• 39 per cent of employers deducted pay from workers’ wages.
• 39 per cent of employers failed to pay workers correctly for their working time.
• 21 per cent of employers paid the incorrect apprenticeship rate.

Some minimum wage underpayments are unintentional, however, HMRC states that there is no excuse for underpaying workers.

Pay guidance for employers is available on GOV.UK and on June 21 the government published additional advice about breaches and the steps employers should take to make sure they pay their workers correctly.

Bryan Sanderson - Chair of the Low Pay Commission - said, “The minimum wage acts as a guarantee to ensure all workers without exception receive a decent minimum standard of pay. Where employers break the law, they not only do a disservice to their staff but also undermine fair competition between businesses.

“Regular naming rounds should be a useful tool in raising awareness of underpayment and helping to protect minimum wage workers.”

The government has made it clear that anyone entitled to be paid the minimum wage should receive it and stated that robust enforcement action will be taken against employers who do not pay their staff correctly.

The budget for minimum wage enforcement has reportedly doubled since 2015 with the government having ordered employers to repay over £100 million to 1 million workers.

Top 10 employers named in Round 19

The first ten employers named and shamed for failing to pay the National Minimum Wage are detailed below:

1. WH Smith Retail Holdings Limited, Swindon, SN3, failed to pay £1,017,693.36 to 17,607 workers.
2. Lloyds Pharmacy Limited, Coventry, CV2, failed to pay £903,307.47 to 7,916 workers.
3. Marks and Spencer P.L.C., London, W2, failed to pay £578,390.79 to 5,363 workers.
4. Argos Limited, Milton Keynes, MK9, failed to pay £480,093.58 to 10,399 workers.
5. Buzz Group Limited - Voluntary Arrangement 3/8/20, Nottingham, NG7, failed to pay £319,297.21 to 3,448 workers.
6. Baxterstorey Limited, Reading, RG6, failed to pay £185,242.24 to 2,166 workers.
7. McNicholas Construction Services Limited, Elstree, WD6, failed to pay £170,517.57 to 704 workers.
8. Showsec International Limited, Leicester, LE1, failed to pay £107,835.49 to 5,574 workers.
9. Brunning and Price Limited, Chester, CH3, failed to pay £98,675.37 to 1,500 workers.
10. Chanel Limited, Croydon, CR9, failed to pay £70,413.59 to 250 workers.

The full list of named employers is available here (MS Excel Spreadsheet, 48.4 KB)

Source: GOV.UK

(Links and quotes via original reproing)

In the UK, over 200 employers have been named by the government for failing to pay minimum wage to their lowest-paid staff, GOV.UK reports.

In a clear breach of the National Minimum Wage (NMW) law, 202 employers were found to have failed to pay their workers almost £5 million. Around 63,000 workers were underpaid.

Companies named in the list, released on June 21, reportedly ranged from major high street brands to small businesses and sole traders, in a lesson from the government that no employer is exempt from paying their workers the statutory minimum wage.

Kevin Hollinrake - Minister for Enterprise, Markets and Small Business - said, “Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff.

“Most businesses do the right thing and look after their employees, but we’re sending a clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences.”

The businesses named in the list have repaid what they owe to their staff and have also faced financial penalties. The HMRC investigations were reportedly concluded between 2017 and 2019.

The named employers had underpaid workers in the following ways:

• 39 per cent of employers deducted pay from workers’ wages.
• 39 per cent of employers failed to pay workers correctly for their working time.
• 21 per cent of employers paid the incorrect apprenticeship rate.

Some minimum wage underpayments are unintentional, however, HMRC states that there is no excuse for underpaying workers.

Pay guidance for employers is available on GOV.UK and on June 21 the government published additional advice about breaches and the steps employers should take to make sure they pay their workers correctly.

Bryan Sanderson - Chair of the Low Pay Commission - said, “The minimum wage acts as a guarantee to ensure all workers without exception receive a decent minimum standard of pay. Where employers break the law, they not only do a disservice to their staff but also undermine fair competition between businesses.

“Regular naming rounds should be a useful tool in raising awareness of underpayment and helping to protect minimum wage workers.”

The government has made it clear that anyone entitled to be paid the minimum wage should receive it and stated that robust enforcement action will be taken against employers who do not pay their staff correctly.

The budget for minimum wage enforcement has reportedly doubled since 2015 with the government having ordered employers to repay over £100 million to 1 million workers.

Top 10 employers named in Round 19

The first ten employers named and shamed for failing to pay the National Minimum Wage are detailed below:

1. WH Smith Retail Holdings Limited, Swindon, SN3, failed to pay £1,017,693.36 to 17,607 workers.
2. Lloyds Pharmacy Limited, Coventry, CV2, failed to pay £903,307.47 to 7,916 workers.
3. Marks and Spencer P.L.C., London, W2, failed to pay £578,390.79 to 5,363 workers.
4. Argos Limited, Milton Keynes, MK9, failed to pay £480,093.58 to 10,399 workers.
5. Buzz Group Limited - Voluntary Arrangement 3/8/20, Nottingham, NG7, failed to pay £319,297.21 to 3,448 workers.
6. Baxterstorey Limited, Reading, RG6, failed to pay £185,242.24 to 2,166 workers.
7. McNicholas Construction Services Limited, Elstree, WD6, failed to pay £170,517.57 to 704 workers.
8. Showsec International Limited, Leicester, LE1, failed to pay £107,835.49 to 5,574 workers.
9. Brunning and Price Limited, Chester, CH3, failed to pay £98,675.37 to 1,500 workers.
10. Chanel Limited, Croydon, CR9, failed to pay £70,413.59 to 250 workers.

The full list of named employers is available here (MS Excel Spreadsheet, 48.4 KB)

Source: GOV.UK

(Links and quotes via original reproing)