260 employers named and shamed

Foul! Falkirk, Motherwell and Morton football clubs named and shamed

The Department for Business, Energy and Industrial Strategy (BEIS) today named 260 employers for failing to pay 16,000 workers at least minimum wage rates. Government investigators identified £1.7 million in back pay for some of the UK’s lowest paid workers and fined employers £1.3 million for underpayment.

Retail, hairdressing and hospitality businesses were among the most prolific offenders in this round. Common reasons for errors made include: failing to pay workers travelling between jobs, deducting money from pay for uniforms and not paying for overtime.

Sports Direct and Primark are among the bigger companies to feature on the latest list of lawbreakers, and three Scottish football clubs – Falkirk, Motherwell and Greenock Morton – are named and shamed.

Edinburgh’s Northumberland Hotel is also on the list, having failed to pay £4,685.39 to two workers and also in the capital, A & K Hair Design failed to pay £1172 to one worker.

Let’s hear it too for the aptly named Crook and Crook, in Inverness, who failed to pay £5,726.77 to two staff!

Business Minister Margot James said: “There is no excuse for not paying staff the wages they’re entitled to and the government will come down hard on businesses that break the rules.

“That’s why today we are naming hundreds of employers who have been short changing their workers; and to ensure there are consequences for their wallets as well as their reputation, we’ve levied millions in back pay and fines.

Bryan Sanderson, Chairman of the Low Pay Commission, said: “The Low Pay Commission’s conversations with employers suggest that the risk of being named is encouraging businesses to focus on compliance.

“Further, it is good to see that HMRC continues to target large employers who have underpaid a large number of workers, as well as cases involving only a few workers, where workers are at risk of the most serious exploitation. It is imperative that the government keeps up the pressure on all employers who commit breaches of minimum wage law.

If workers are concerned they are not being paid the correct rates then they can seek advice from workplace experts Acas.

Since 2013, the scheme has identified £8 million in back pay for 58,000 workers, with 1,500 employers fined a total of £5 million. This year the government will spend a record £25.3 million on minimum wage enforcement.

Rates will rise again in April 2018, giving young workers in particular the biggest pay boost in a decade.