HMRC shame firms in wage investigation

Three Tayside businesses are being “named and shamed” by the UK Government for failing to pay the minimum wage.

A car garage, beauty salon and nursery in Tayside are among 208 business named on the list which follows HMRC investigations.

The UK Government said that together the firms failed to pay their workers £1.2 million in a “clear breach” of National Minimum Wage law, leaving around 12,000 workers out of pocket.

The list includes: C.P. Garage Services (Dundee) Limited, Dundee; M&R Childcare Services Ltd, trading as First Steps Nursery, Montrose; and Miss Zoe Linton, trading as The Green Room, Dundee.

The government said the businesses have paid what they owe to staff and face financial penalties of up to 200% of what was owed.

Based at Baluniefield Industrial Estate in Dundee, CP Garage Services has operated since 1993. It underpaid one worker £592 in 2018.

Owner Euan Colbron said the minimum wage breach was “news to him”.

He said: “I’m completely unaware of it. I leave it to my accountant.

“They notify me of what’s required to pay and that gets paid whether it’s wages or tax bills. I let them handle that.”

M&R Childcare Services in Montrose operated a nursery in John Street, Montrose. The nursery closed in 2019 and the company was dissolved in August 2020.

It failed to pay £1,806 to 20 workers.

Dundee’s The Green Room, a beauty salon, also no longer operates. It failed to pay £507 to three workers. Miss Linton did not respond to requests to comment.

The investigations took place between 2014 and 2019 and the government said it will take robust enforcement action against employers who do not pay their staff correctly.

Minister for Labour Markets Paul Scully said: “We want workers to know that we’re on their side and they must be treated fairly by their employers.

“Today’s 208 businesses, whatever their size, should know better than to shortchange hard-working employees, regardless of whether it was intentional or not.

“With Christmas fast approaching, it’s more important than ever that cash is not withheld from the pockets of workers. So don’t be a scrooge – pay your staff properly.”

Since 2015, the budget for minimum wage enforcement has doubled and Bryan Sanderson, chairman of the Low Pay Commission, said: “We hope this latest naming round can continue to raise awareness of the most common mistakes businesses make and help protect low-paid workers.”

SHORT PAY: Three Tayside businesses were found by HMRC to have underpaid staff by not implementing the minimum wage requirements set by the UK Government.