Scottish firms named and shamed for failing to pay staff the minimum wage

Twenty-five Scottish businesses are today “named and shamed” by the UK government for failing to pay employees the national living and minimum wage.

According to UK government figures compiled since 2011, the Scottish businesses had owed 300 workers a total of £60,000.

When taken across the UK as a whole, a total of £1.42 million in backpay had been identified for 23,000 employees in more than 230 firms.

In addition to the Scottishheadquartered companies, prominent UK wide companies with significant presences north of the Border were also named and shamed.

They included Home Bargains and Card Factory. The research said Card Factory’s wage bill was in arrears by £430,097 between 2013 and 2016, an average shortfall of £41 for 10,256 workers.

Home Bargains’ total shortfall

0 Scottish hospitality and and care firms were among a range of business ‘named and shamed’ was £272,228 between 6,743 workers between April and June of 2016, coming to an average per employee of £40.

The Scottish based company with the highest wages shortfall was Orkney and Shetland Charters, a firm specialising in boat trips.

Five employees were in arrears to the tune of more than £4,000 each between 2015 and 2017.

The research, done using HMRC data, said Orkney and Shetland Charters had arrears totalling £20,148. Last night a representative of the company said the firm was aware of its presence on the list but declined to comment further.

One of the most prominent Scottish businesses mentioned was Dundee Football Club. The list said four employees of the Dens Park club had arrears averaging £533 (coming to a total of £2,134) between January 2015 and May 2016.

A Dundee FC spokesman said four players had been underpaid as a result of a administrative shortcomings. The players had since had the cash made up to them in a subsequent salary.

In general, the shortfalls varied from a few pounds per worker to more serious cases where employees found themselves more than one thousand pounds short.

Today’s research identifies backpay affecting more UK workers than any previous list and has generated record fines of £1.95m.

Amongthereasonsforworkers being underpaid were employers making deductions for uniforms, underpaying apprentices and failing to pay travel time.

Adults over 25 should be paid at least £7.83 per hour. Employers who pay workers less than the minimum wage have to pay back arrears of wages to the worker at current minimum wage rates and face financial penalties of up to 200 per cent of arrears, capped at £20,000 per worker.

Low Pay Commission chairman Bryan Sanderson said: “It is crucial that employers understand their responsibilities and workers know their rights around the minimum wage.”