WH Smith, Argos and Marks and Spencer have been named alongside over 200 UK companies for failing to pay the statutory minimum wage to their employees.
The list issued by the Department of Business and Trade shows that the 202 employers had left 63,000 employees out of pocket, amounting to an overall penalty of nearly £7 million.
The most frequent reasons for underpayment by employers included:
- Pay deductions (39%);
- Incorrect payments for working time (39%); and
- Incorrect apprenticeship rates (21%).
Minister for Enterprise, Markets and Small Business Kevin Hollinrake explained that “paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff”.
The Government’s decision to name and shame can lead to significant reputational damage for businesses and demonstrates the importance of correctly paying employees. The current rates for the National Minimum Wage and National Living Wage can be viewed here: https://www.gov.uk/national-minimum-wage-rates).
Please feel free to contact the Employment Team at [email protected] for any assistance.