[UK] HMRC fines nearly 500 employers for underpaying workers

In the UK, HMRC has fined nearly 500 employers more than £10m for failing to pay the national minimum wage to their employees, People Management reports.

The penalties form part of government efforts to send a “clear message” that it won’t tolerate companies that “short change their workers”. Around 42,000 employees are now set to be reimbursed a combined £6 million. 

UK Business Secretary Peter Kyle said, “Every worker deserves a fair day’s pay for a fair day’s work, and this government will not tolerate rogue employers who short change their staff.”

The service station and convenience store chain EG Group was reportedly found to be the biggest underpayments offender, failing to pay a combined £824,384 to 3,317 workers. 

It stated that the underpayment was a result of historic payroll issues that have now been rectified, adding that all affected employees were reimbursed. 

An EG Group spokesperson said, “Once these issues were identified, we implemented robust remedies to ensure future compliance in recognition of our employees’ vital contribution to our business. We are committed to the equitable treatment of our employees in full compliance with UK law.”

British Gas owner Centrica failed to pay £167,815 to 356 of its staff. It attributed this to a technical error. A Centrica spokesperson said, “The total underpayment related primarily to salary sacrifice arrangements and training bonds, rather than take-home pay, and was around £160,000 – our UK annual wage bill is currently around £1.2bn.” 

The high street health chain Holland & Barrett was also named among the top 10 worst offenders. It was reportedly revealed to have underpaid 2,551 workers a combined £153,079. 

“This was not a case of deliberate underpayment,” a spokesperson for the chain said. “The issue stemmed from legacy practices such as requiring team members to wear specific shoes, unpaid training completed at home, and time spent preparing for shifts at our Burton distribution site.”

Holland & Barrett ermployees were notified and reimbursed once the issue was identified.

“There is no excuse for workers being cheated out of money they’re owed,” TUC general secretary Paul Nowak said. “It’s bad for workers, families and the economy. That’s why the government's new Fair Work Agency must be properly resourced – it has a vital role to play in ensuring employers play by the rules.”

The UK government’s Fair Work Agency will come into operation next year. It will be tasked with enforcing compliance with labour laws, including payment of the national minimum wage. Matthew Taylor, chief executive of the NHS Confederation, has been announced as the agency’s chair.

Source: People Management

(Quotes via original reporting)

In the UK, HMRC has fined nearly 500 employers more than £10m for failing to pay the national minimum wage to their employees, People Management reports.

The penalties form part of government efforts to send a “clear message” that it won’t tolerate companies that “short change their workers”. Around 42,000 employees are now set to be reimbursed a combined £6 million. 

UK Business Secretary Peter Kyle said, “Every worker deserves a fair day’s pay for a fair day’s work, and this government will not tolerate rogue employers who short change their staff.”

The service station and convenience store chain EG Group was reportedly found to be the biggest underpayments offender, failing to pay a combined £824,384 to 3,317 workers. 

It stated that the underpayment was a result of historic payroll issues that have now been rectified, adding that all affected employees were reimbursed. 

An EG Group spokesperson said, “Once these issues were identified, we implemented robust remedies to ensure future compliance in recognition of our employees’ vital contribution to our business. We are committed to the equitable treatment of our employees in full compliance with UK law.”

British Gas owner Centrica failed to pay £167,815 to 356 of its staff. It attributed this to a technical error. A Centrica spokesperson said, “The total underpayment related primarily to salary sacrifice arrangements and training bonds, rather than take-home pay, and was around £160,000 – our UK annual wage bill is currently around £1.2bn.” 

The high street health chain Holland & Barrett was also named among the top 10 worst offenders. It was reportedly revealed to have underpaid 2,551 workers a combined £153,079. 

“This was not a case of deliberate underpayment,” a spokesperson for the chain said. “The issue stemmed from legacy practices such as requiring team members to wear specific shoes, unpaid training completed at home, and time spent preparing for shifts at our Burton distribution site.”

Holland & Barrett ermployees were notified and reimbursed once the issue was identified.

“There is no excuse for workers being cheated out of money they’re owed,” TUC general secretary Paul Nowak said. “It’s bad for workers, families and the economy. That’s why the government's new Fair Work Agency must be properly resourced – it has a vital role to play in ensuring employers play by the rules.”

The UK government’s Fair Work Agency will come into operation next year. It will be tasked with enforcing compliance with labour laws, including payment of the national minimum wage. Matthew Taylor, chief executive of the NHS Confederation, has been announced as the agency’s chair.

Source: People Management

(Quotes via original reporting)