Named and shamed: 139 firms which underpaid thousands of workers
95,000 missed out on £6.7m
MORE than 95,000 workers were underpaid £6.7million by 139 employers named and shamed by the Government today for breaking minimum wage laws.
The biggest on the list is Tesco, which “short-changed” 78,199 of its employees by a total of £5million on their rightful earnings.
The firms’ actions were “a completely unacceptable breach of employment law”, said the Department for Business, Energy and Industrial Strategy as it revealed the figures for offences between 2016 and 2018.
Tesco said: “In 2017 we identified a technical issue that meant some colleagues’ pay inadvertently fell below the national minimum.
“We are very sorry this happened and reported it at the time to HMRC.
“All colleagues were reimbursed in full, in most cases £10 or less, and we immediately changed our policies to prevent a recurrence.
“We are therefore extremely disappointed and surprised to be on this list as none of the examples shared by BEIS relate to Tesco.”
Other firms named include: Pizza Hut, which underpaid 10,980 staff by £845,936; Superdrug, which owed 2,222 workers £15,228; and the fivestar Lowry Hotel in Salford, which failed to pay £63,431 to 99 employees.
FINES
All the companies involved had to reimburse affected staff. Some were also given undisclosed fines, which can be up to 200% of the arrears.
The actions mark the first time since 2018 that firms have been identified for failing to pay the national minimum wage, following reforms to the process to ensure “only the worst offenders are targeted”.
Business Minister Paul Scully said: “Paying the minimum wage is not optional, it is the law.
“It is never acceptable for any employer to short-change their staff but it is especially disappointing to see huge household names, who should know better, on this list.
“This should be a wake-up call to named employers and a reminder to all of the importance of paying workers what they are legally entitled to.
“Make no mistake, those who fail to follow minimum wage rules will be caught out and d made to pay up.” His department ment said “preserving and enforcing nforcing workers’ rights is a priority for this Government”. nt”.
It added: “The he vast majority of businesses sinesses follow the law and d uphold
Paying the minimum wage is not optional, it is the law
PAUL SCULLY BUSINESS MINISTER
workers’ rights but publication of the list is intended as a warning to rogue employers that the Government will take action against those who fail to pay their employees properly.” The legal-minimum national living wage g – the top p end of the NMW – is £8.72 an hour. hou That falls to £8.20 for worke workers aged 21-24 and just £6.45 for those aged 18-20. Pizza Hut said: “Years ago, with ma many firms in the sector, HMRC made us aware of a policy error. In 2018 we complete completed a pay adjustment for curren current and ex-staff.
“There was never intent to underpay our employees. We advocate the principles that underpin minimum pay and are confident the processes have been fixed.”
Shop workers’ union Usdaw said: “Tesco has always paid well over the minimum and this underpayment was a technical issue, now resolved.
“But too many employers deliberately pay below the minimum rates.”
Economist Hannah Slaughter, of the Resolution Foundation, said: “Restarting the naming and shaming regime to tackle guilty firms should be a catalyst for levelling up low pay.”