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Hundreds of companies failing to pay minimum wage | Hundreds of companies failing to pay minimum wage |
(6 months later) | |
The government has named 360 businesses which have failed to pay either the National Minimum Wage (NMW) or the National Living Wage (NLW). | The government has named 360 businesses which have failed to pay either the National Minimum Wage (NMW) or the National Living Wage (NLW). |
Among them are well-known names like Debenhams, Subway, Lloyds Pharmacy and St Mirren Football Club. | Among them are well-known names like Debenhams, Subway, Lloyds Pharmacy and St Mirren Football Club. |
More than 15,500 workers had to be paid back nearly one million pounds. | More than 15,500 workers had to be paid back nearly one million pounds. |
But that may represent just the tip of the iceberg: The Office for National Statistics has calculated that 362,000 jobs did not pay the NMW in April 2016. | But that may represent just the tip of the iceberg: The Office for National Statistics has calculated that 362,000 jobs did not pay the NMW in April 2016. |
However that includes some people who get accommodation or other benefits as part of their pay. | |
The biggest offenders were employers in hairdressing, hospitality and retail. | The biggest offenders were employers in hairdressing, hospitality and retail. |
One worker at a dental practice in London's Harley Street was refunded nearly £12,000. | One worker at a dental practice in London's Harley Street was refunded nearly £12,000. |
Minimum Wage | Minimum Wage |
The fashion store Debenhams had to re-pay £134,000 to more than 11,000 staff - more than half of its shop workers - after an accounting error left each of them around £11 short in wages. | The fashion store Debenhams had to re-pay £134,000 to more than 11,000 staff - more than half of its shop workers - after an accounting error left each of them around £11 short in wages. |
The company was fined £63,000. | The company was fined £63,000. |
A spokesperson said, "As a responsible employer Debenhams is committed to the National Minimum Wage, and as soon as the error was identified by a routine HMRC audit last year, we reimbursed all those affected." | A spokesperson said, "As a responsible employer Debenhams is committed to the National Minimum Wage, and as soon as the error was identified by a routine HMRC audit last year, we reimbursed all those affected." |
See the full list of businesses here. | See the full list of businesses here. |
Excuses used by businesses for not paying the full basic wage included using tips to top up their pay, making reductions to pay for a Christmas party, or making staff pay for their own uniforms. | Excuses used by businesses for not paying the full basic wage included using tips to top up their pay, making reductions to pay for a Christmas party, or making staff pay for their own uniforms. |
For the first time the list includes firms which failed to pay the National Living Wage, which was introduced on 1 April 2016 for workers over the age of 25. | For the first time the list includes firms which failed to pay the National Living Wage, which was introduced on 1 April 2016 for workers over the age of 25. |
The current rate is £7.20 an hour. Those under 25 receive the NMW, currently £6.95 for 21 to 24 year-olds, and £5.55 for 18 to 20 year-olds. | The current rate is £7.20 an hour. Those under 25 receive the NMW, currently £6.95 for 21 to 24 year-olds, and £5.55 for 18 to 20 year-olds. |
'Higher fines' | 'Higher fines' |
In total the 360 businesses that broke the law were fined £800,000. | In total the 360 businesses that broke the law were fined £800,000. |
However the TUC said that was not a big enough deterrent. It called for higher fines, and more prosecutions. | However the TUC said that was not a big enough deterrent. It called for higher fines, and more prosecutions. |
"This should be a wake-up call for employers who value their reputation. If you cheat your staff out of the minimum wage you will be named and shamed," said the TUC's general secretary, Frances O'Grady. | "This should be a wake-up call for employers who value their reputation. If you cheat your staff out of the minimum wage you will be named and shamed," said the TUC's general secretary, Frances O'Grady. |
"But we also need to see prosecutions and higher fines for the most serious offenders, especially those who deliberately flout the law." | "But we also need to see prosecutions and higher fines for the most serious offenders, especially those who deliberately flout the law." |
The ONS has said that 1.3% of employees are not being paid the minimum, amounting to 178,000 full-time workers, and 184,000 part-time workers. | The ONS has said that 1.3% of employees are not being paid the minimum, amounting to 178,000 full-time workers, and 184,000 part-time workers. |
But the TUC believes that even that number is an under-estimate, as it does not take into account those working in internships, or those who may be wrongly classified as self-employed. | But the TUC believes that even that number is an under-estimate, as it does not take into account those working in internships, or those who may be wrongly classified as self-employed. |