UK
House of Fraser, Waterstones and Schuh among 208 firms named for breaching minimum wage rulesNineteen employers operating in Scotland have been identified by the UK Government.
By Linda Howard
Money and Consumer Writer
9 DEC 2021
9 DEC 2021
The Buchanan Street store in Glasgow could be at risk (Image: Getty Images)
House of Fraser, Schuh and Waterstones are among more than 200 employers across the country who broke minimum wage laws when paying staff, according to a new report from the UK Government.
The businesses were named as among the 208 firms, including 19 in Scotland, that failed to pay around £1.2 million to their workers, breaking national minimum wage laws, leaving about 12,000 workers out of pocket, the UK Government said.
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, which is why paying the legal minimum wage should be non-negotiable for businesses.”
He continued: "Today's 208 businesses, whatever their size, should know better than to short-change 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."
The most common problem among the named companies was that they deducted money from staff's wages to pay for expenses such as work uniforms.
About 37 per cent of businesses fell into this trap.
Meanwhile, 29 per cent did not pay for mandatory training, trial shifts or travel time, 16 per cent did not pay enough to apprentices, and 11 per cent did not increase what they paid staff when the minimum wage was hiked, or paid younger workers at the wrong rate.
House of Fraser failed to pay over £16,000 to 354 workers, Schuh failed to pay £807 to 39 staff and Waterstones failed to pay nearly £8,700 to 58 staff.
The current House of Fraser owner, Frasers Group, said that the claims come from before it bought House of Fraser in 2018.
It said: "In short, these breaches are historic and relate to the activities of the old House of Fraser company that is now in administration and is nothing at all to do with any activities of the new House of Fraser business that is owned by Frasers Group."
Low Pay Commission chair Bryan Sanderson said: "The minimum wage is a success story welcomed by employees and employers alike, but it only works if everyone without exception obeys the law.
"We hope this latest naming round can continue to raise awareness of the most common mistakes businesses make and help protect low-paid workers from unfair treatment."
Trades Union Congress general secretary Frances O'Grady said: "Every worker deserves fair pay for their work.
"There's no excuse for not paying the minimum wage. Firms who cheat staff out of their hard-earned money deserve to be named and shamed.
"We also need to see prosecutions and higher fines for the most serious offenders, especially those who deliberately flout the law. Minimum wage underpayment is still far too common in Britain."
The Uk Government said it is determined to make work pay, having recently announced a significant rise to the National Living Wage from April 2022.
This will lead to a pay rise for some of the lowest paid workers in the UK, with workers on the National Living Wage seeing a 6.6% increase to £9.50 an hour.
This is the biggest increase to the National Living Wage since its introduction, which the UK Government says will keep it on track to achieve its manifesto commitment for the National Living Wage to equal two-thirds of median earnings by 2024.
More details about the list can be found on the GOV.UK website here.
House of Fraser, Schuh and Waterstones are among more than 200 employers across the country who broke minimum wage laws when paying staff, according to a new report from the UK Government.
The businesses were named as among the 208 firms, including 19 in Scotland, that failed to pay around £1.2 million to their workers, breaking national minimum wage laws, leaving about 12,000 workers out of pocket, the UK Government said.
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, which is why paying the legal minimum wage should be non-negotiable for businesses.”
He continued: "Today's 208 businesses, whatever their size, should know better than to short-change 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."
The most common problem among the named companies was that they deducted money from staff's wages to pay for expenses such as work uniforms.
About 37 per cent of businesses fell into this trap.
Meanwhile, 29 per cent did not pay for mandatory training, trial shifts or travel time, 16 per cent did not pay enough to apprentices, and 11 per cent did not increase what they paid staff when the minimum wage was hiked, or paid younger workers at the wrong rate.
House of Fraser failed to pay over £16,000 to 354 workers, Schuh failed to pay £807 to 39 staff and Waterstones failed to pay nearly £8,700 to 58 staff.
The current House of Fraser owner, Frasers Group, said that the claims come from before it bought House of Fraser in 2018.
It said: "In short, these breaches are historic and relate to the activities of the old House of Fraser company that is now in administration and is nothing at all to do with any activities of the new House of Fraser business that is owned by Frasers Group."
Low Pay Commission chair Bryan Sanderson said: "The minimum wage is a success story welcomed by employees and employers alike, but it only works if everyone without exception obeys the law.
"We hope this latest naming round can continue to raise awareness of the most common mistakes businesses make and help protect low-paid workers from unfair treatment."
Trades Union Congress general secretary Frances O'Grady said: "Every worker deserves fair pay for their work.
"There's no excuse for not paying the minimum wage. Firms who cheat staff out of their hard-earned money deserve to be named and shamed.
"We also need to see prosecutions and higher fines for the most serious offenders, especially those who deliberately flout the law. Minimum wage underpayment is still far too common in Britain."
The Uk Government said it is determined to make work pay, having recently announced a significant rise to the National Living Wage from April 2022.
This will lead to a pay rise for some of the lowest paid workers in the UK, with workers on the National Living Wage seeing a 6.6% increase to £9.50 an hour.
This is the biggest increase to the National Living Wage since its introduction, which the UK Government says will keep it on track to achieve its manifesto commitment for the National Living Wage to equal two-thirds of median earnings by 2024.
More details about the list can be found on the GOV.UK website here.
Blackburn business shamed for failing to pay minimum wage
By Sophie-May Clarke @smclarkey95
By Sophie-May Clarke @smclarkey95
Chief Reporter
A BUSINESS in Blackburn with Darwen has been 'named and shamed' for failing to pay their lowest-paid staff minimum wage.
Over 200 employers have been named by the government for failing to pay their lowest paid staff the minimum wage.
The 208 employers were found to have 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.
Among them is Shabani Ltd, which failed to pay £3,606.19 to three workers.
The company, which is registered as a take-away business, was based on Whalley New Road and was dissolved earlier this year.
Companies being named range from multinational businesses and large high street names to small and medium enterprises and sole traders, in a clear message that no employer is exempt from paying their workers the statutory minimum wage.
These businesses have since had to pay back what they owe to staff and also face significant financial penalties of up to 200 per cent of what was owed, which are paid to the government. The investigations by Her Majesty's Revenue and Customs concluded between 2014 and 2019.
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, which is why paying the legal minimum wage should be non-negotiable for businesses.
"Today's 208 businesses, whatever their size, should know better than to short-change hard-working employees, regardless of whether it was intentional or not.
"With Christmas fast approaching, it is more important than ever that cash is not withheld from the pockets of workers. So don't be a scrooge, pay your staff properly."
Who else has been shamed?
A BUSINESS in Blackburn with Darwen has been 'named and shamed' for failing to pay their lowest-paid staff minimum wage.
Over 200 employers have been named by the government for failing to pay their lowest paid staff the minimum wage.
The 208 employers were found to have 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.
Among them is Shabani Ltd, which failed to pay £3,606.19 to three workers.
The company, which is registered as a take-away business, was based on Whalley New Road and was dissolved earlier this year.
Companies being named range from multinational businesses and large high street names to small and medium enterprises and sole traders, in a clear message that no employer is exempt from paying their workers the statutory minimum wage.
These businesses have since had to pay back what they owe to staff and also face significant financial penalties of up to 200 per cent of what was owed, which are paid to the government. The investigations by Her Majesty's Revenue and Customs concluded between 2014 and 2019.
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, which is why paying the legal minimum wage should be non-negotiable for businesses.
"Today's 208 businesses, whatever their size, should know better than to short-change hard-working employees, regardless of whether it was intentional or not.
"With Christmas fast approaching, it is more important than ever that cash is not withheld from the pockets of workers. So don't be a scrooge, pay your staff properly."
Who else has been shamed?
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