Clear message

HMRC told to ‘proactively investigate’ Sports Direct over staff frisking claims

The Government has given its clearest hint yet that it feels that HMRC should investigate Sports Direct following allegations that staff are forced to wait up to 15 minutes a day – unpaid – while being frisked for stolen goods.

HMRC is the body tasked with implementing minimum wage rules and investigating the kinds of breaches alleged against Sports Direct. But it has so far not taken action because Sports Direct employees have not come forward to make specific allegations. MPs alleged yesterday that they were too scared.

The business minister, Nick Boles, in answer to an urgent question asked in the Commons by Labour’s former shadow business minister, Chuka Umunna, said that while it was preferable for HMRC to have evidence from employees, it could take “proactive” measures to investigate if it chose to.

He said: “HMRC undertakes targeted enforcement in sectors of concern, and [I can assure you] they will be listening to this debate.”

In that debate, MPs on both sides of the House queued up to attack a host of Sports Direct’s alleged practices.

Mr Umunna said: “This company is a bad advertisement for British business, with a culture of fear in our workplaces.” He added: “HMRC says it cannot act without evidence from workers, but many of them are fearful of coming forward. Why can’t HMRC go ahead and investigate withoutworkers putting their necks on the line?”

Mr Boles responded that HMRC could “proactively investigate and not wait for a specific complaint”.

Dennis Skinner, whose Bolsover constituencyincludes Sports Direct’s Shirebrook warehouse, described Sports Direct’s founder Mike Ashley as a “monster” from Millionaire’s Row who would test Mr Boles’s mettle. He went on to advise the minister, a former investment banker educated at Winchester public school: “Get stuck in.”

The Labour MP Diana Johnson called for an offence of exploitation to be passed to catch bad employers. Mr Boles said no new laws were needed, but enforcement of existing rules was vital.

Many Sports Direct workers are fearful of coming forward