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19/08/2017 - Companies fail to pay minimum wage

minimumwageSome companies are failing to pay their workers the minimum wage. They are effectively stealing from them.

 

Business Minister Margot James said:“It is against the law to pay workers less than legal minimum wage rates, short-changing ordinary working people and undercutting honest employers.

“Today’s naming round identifies a record £2m of back pay for workers and sends the clear message to employers that the government will come down hard on those who break the law.”

 

One of the worst offenders named in the latest round is catalogue giant Argos, which failed to pay £1,461,881.78 to 12,176 workers.

 

Earlier this year the retail giant was fined £1.5m and forced to repay £2.4m in wages to 37,000 current and former shop workers after an HMRC investigation.

 

The underpayments of about £64 per person date back to 2014 and were first uncovered last year ahead of Argos’s takeover by Sainsbury’s.

 

Other culprits include construction companies, nurseries, hairdressers and private care homes which have been fined a total £1.9 million. n a breakdown of the 223 businesses three areas were prominent;-

 

Hairdressing and beauty treatments: around 60 employers, around £121,000 arrears for around 200 workers.
Hospitality: around 50 employers, around £77,000 arrears for around 220 workers.
Retail trade: around 20 employers, £1.5m arrears for around 12,200 workers.

 

Melissa Tatton, Director at HM Revenue and Customs said: “HMRC is committed to getting money back into the pockets of underpaid workers, and continues to crack down on employers who ignore the law.

“Those not paying workers the National Minimum or Living Wage can expect to face the consequences.”