Fact Service (December 2017)

Issue 50

Scrooge employers named and shamed


Two hundred and sixty employers feature in a government list of firms that failed to pay 16,000 workers at least National Minimum Wage rates.


Government investigators identified £1.7 million in back pay for some of the UK’s lowest paid workers and fined employers £1.3 million for underpayment.


Retail, hairdressing and hospitality businesses were among the most prolific offenders in this round of naming and shaming. Common reasons for errors made include: failing to pay workers travelling between jobs, deducting money from pay for uniforms and not paying for overtime.


Retailer Sports Direct was named as the fourth-largest offender and has had to hand back £167,036 to 383 workers, while its staffing agencies — Best Connection and Transline — topped the shame list for underpaying employees. 


Best Connection was found to have underpaid £469,273 to 2,558 workers and Qualitycourse Limited, which trades as Transline, had failed to pay £310,302 to 1,421 workers.


Another retailer — Primark — was listed as the third-largest offender. It deducted shop worker’s uniforms from their salaries, resulting in them earning less than the minimum wage. Primark was forced to pay back £231,973 to 9,735 employees.


Six football clubs featured — the highest ranked in league terms — was Wolves of the Championship, followed by Bristol Rovers of League One and Torquay of the National League. Three Scottish clubs were listed: Motherwell of the Scottish Premiership — and Greenock Morton and Falkirk — both from the Scottish Championship.


www.gov.uk/government/news/17m-back-pay-identified-for-a-record-16000-workers-as-260-employers-are-named-and-shamed-for-underpaying-minimum-wage-rates


This information is copyright to the Labour Research Department (LRD) and may not be reproduced without the permission of the LRD.