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National Minimum Wage: Workers win £2m compensation | National Minimum Wage: Workers win £2m compensation |
(35 minutes later) | |
Workers whose bosses failed to pay the National Minimum Wage are to be refunded a record £2m, the government has revealed. | |
In its latest "name and shame" campaign, it lists 230 employers which have not complied with the law. | In its latest "name and shame" campaign, it lists 230 employers which have not complied with the law. |
In total 13,000 employees have received - or will receive - compensation for their loss of pay. | In total 13,000 employees have received - or will receive - compensation for their loss of pay. |
Among the worst offenders was the retailer Argos, as well as hairdressers and beauty treatment businesses. | |
About 50 employers in the hospitality sector - including two fish and chip shops - were fined for not paying the minimum wage, or the National Living Wage for those aged over 25. | |
Argos | Argos |
However the largest fine, of £800,000, was levied on Argos. | However the largest fine, of £800,000, was levied on Argos. |
In February Argos admitted failing to pay 37,000 staff an average of £64 each. However, only a third of those are included in the latest figures, as the others were no longer working for the company at the time. | |
Employees had been required to attend briefings before their shifts started, but without being paid. They also had to undergo security searches after their shifts ended. | Employees had been required to attend briefings before their shifts started, but without being paid. They also had to undergo security searches after their shifts ended. |
Sainsbury's, which bought Argos a year ago, has already apologised for the mistake. | Sainsbury's, which bought Argos a year ago, has already apologised for the mistake. |
"I am pleased to say the issue was resolved quickly, and processes have been updated to ensure this cannot happen again," said John Rogers, the chief executive of Argos. | "I am pleased to say the issue was resolved quickly, and processes have been updated to ensure this cannot happen again," said John Rogers, the chief executive of Argos. |
'Cheated' | 'Cheated' |
Despite the government's apparent success in cracking down on pay, it is thought that hundreds of thousands of workers are still not getting their legal entitlement. | Despite the government's apparent success in cracking down on pay, it is thought that hundreds of thousands of workers are still not getting their legal entitlement. |
In October last year the Office for National Statistics (ONS) put the figure at 362,000. | In October last year the Office for National Statistics (ONS) put the figure at 362,000. |
The TUC said the problem was still far from being solved. | The TUC said the problem was still far from being solved. |
"We know there are more wage-dodging employers out there," said Frances O'Grady, the TUC's general secretary. "TUC research suggests there are at least a quarter of a million workers being cheated out of the minimum wage." | "We know there are more wage-dodging employers out there," said Frances O'Grady, the TUC's general secretary. "TUC research suggests there are at least a quarter of a million workers being cheated out of the minimum wage." |
The current rate for the National Living Wage is £7.50 per hour. | The current rate for the National Living Wage is £7.50 per hour. |
The adult rate for the National Minimum Wage is £7.05 for those between 21 and 24. | The adult rate for the National Minimum Wage is £7.05 for those between 21 and 24. |