Tuesday, 25 September, 2018

Government 'names and shames' employers on minimum wage violations

Government 'names and shames' employers on minimum wage violations Government 'names and shames' employers on minimum wage violations
Nellie Chapman | 10 March, 2018, 17:43

Restaurant chain Wagamama, TGI Fridays, hotel giant Marriott Hotels and fashion retailer Karen Millen have been "named and shamed" by the Government for failing to pay some workers the national minimum wage.

Thursday (UK) Limited, trading as TGI Friday's, Luton LU1, failed to pay £59,347.64 to 2,302 workers.

In total, the Super League side failed to pay £5,536.92 to 117 workers.

Birmingham City FC, Stoke City FC and Leicester-headquartered Shoe Zone have been named among a number of companies which have collectively underpaid more than 9,000 minimum wage workers by £1.1m.

Failing to pay workers for travelling between jobs, not paying overtime, and deducting money for uniforms were some of the reasons for the underpayments.

It said: "We acted quickly to remedy the situation, including arranging to reimburse affected staff and updating our wardrobe policy to ensure there could be no reoccurrence of the issue".

Business minister Andrew Griffiths said: "There are no excuses for short-changing workers".

The latest list, published by the Department for Business, Energy and Industrial Strategy, names 179 employers for failing to pay a record 9,200 workers £1.1m collectively.

Bryan Sanderson, Chairman of the Low Pay Commission, said: "As the National Living Wage and National Minimum Wage rates rise on 1 April, it is vital that workers understand their rights, and employers their obligations".

It comes ahead of the next rate rise on April 1, when the National Living Wage will go up from £7.50 to £7.83 per hour.

'This is a historic payment which was paid previous year, and we have since reimbursed team members for the purchase of their black uniform shoes'.

National Society For Epilepsy (THE), Chiltern SL9, failed to pay £55,251.37 to 26 workers.

Hazelwood House was the worst offender, per employee, on the list, underpaying their three employees by an average of £16,096 each.

"Employees are now no longer permitted to purchase match or club lottery tickets or items from the club shop via such a wage deduction scheme". The minimum wage has been around for almost 20 years - there's absolutely no excuse for not paying it.

"Employers who cheat their staff out of the minimum wage deserve to be named and shamed".

"The recent announcement that all workers will have a right to payslips stating the hours they have worked - an idea originally proposed by the LPC - is a positive step".

"Minimum wage dodgers must have nowhere to hide".

But in both cases the firms said there were exceptional circumstances and to brand them as paying below the minimum wage was both misleading and unfair.

'We apologise to all our associates impacted by this error and have taken steps to ensure it can not happen again'.

A Wagamama statement said the company has always paid minimum wage and makes sure that staff receive 100 per cent of their tips.

HM Revenue and Customs found it had breached rules by requiring them to buy uniforms.