Sports Direct and Primark are among hundreds of companies ‘named and shamed’ by the Government for failing to pay workers the national minimum wage.
The retail giants have been identified as two of the biggest offenders among the 260 employers to be listed.
A total of £1.7 million in back pay was identified for 16,000 workers, with retail, hairdressing and hospitality businesses among the most prolific guilty.
Sports Direct and Primark are among hundreds of companies ‘named and shamed’ by the Government for failing to pay workers the national minimum wage. The retail giants have been identified as two of the biggest offenders among the 260 employers to be listed
Failing to pay workers for travelling between jobs, not paying overtime, and deducting money for uniforms were the main reasons for the under-payment.
Sports Direct, owned by fat cat Mike Ashley, worth a reputed £2.3 billion was said to have failed to pay £167,000 to 383 workers, which the company said related to an issue in its warehouse, widely publicised last year.
Two recruitment agencies – The Best Connection Group and Qualitycourse Limited – which supplied staff to Sports Direct are also among employers to be shamed.
A total of £1.7 million in back pay was identified for 16,000 workers, with retail, hairdressing and hospitality businesses among the most prolific. Sports Direct, owned by fat cat Mike Ashley, worth a reputed £2.3 billion, was said to have failed to pay £167,000 to 383 workers, which the company said related to an issue in its warehouse, widely publicised last year
A Sports Direct spokesman said: ‘This matter relates to the historical situation in our warehouse that was widely publicised in 2016, for which we apologised at the time.
‘We co-operated fully with HMRC to make back payments to Sports Direct staff who were affected.
‘We are committed to treating all our people with dignity and respect, and we pay above the national minimum wage.’
The Best Connection group failed to pay the most of any of the companies named – almost £470,000 to 2,558 workers – while Qualitycourse Ltd, trading as Transline Group, failed to pay £310,000 to 1,421, the Business Department said.
Retail giant Primark failed to pay £231,973.12 to 9735 workers, making them the third most prolific offenders on the list.
Other employers on the list included Motherwell Football Club and Bristol Rovers FC.
Retail giant Primark failed to pay £231,973.12 to 9735 workers, making them the third most prolific offenders on the list. Other employers on the list included Motherwell Football Club and Bristol Rovers FC
Business minister Margot James said: ‘There is no excuse for not paying staff the wages they’re entitled to and the Government will come down hard on businesses that break the rules.
‘That’s why today we are naming hundreds of employers who have been short changing their workers; and to ensure there are consequences for their wallets as well as their reputation, we’ve levied millions in back pay and fines.’
Bryan Sanderson, chairman of the Low Pay Commission, said: ‘The commission’s conversations with employers suggest that the risk of being named is encouraging businesses to focus on compliance.
‘It is good to see that HMRC continues to target large employers who have underpaid a large number of workers, as well as cases involving only a few workers, where workers are at risk of the most serious exploitation.
Business minister Margot James said: ‘There is no excuse for not paying staff the wages they’re entitled to and the Government will come down hard on businesses that break the rules’
‘It is imperative that the Government keeps up the pressure on all employers who commit breaches of minimum wage law.’
TUC general secretary Frances O’Grady said: ‘Today’s list should put the frighteners on rogue employers across the country.
‘Pay your staff properly or face hefty fines and get shamed in the papers.
‘Minimum wage dodging has reached chronic levels in shops, salons and hospitality.
‘The Government should focus their efforts to ensure that these sectors clean up their act.’
Tim Roache, general secretary of the GMB, said: ‘These companies rake in millions of pounds in profit yet seemingly think it’s ok to cheat workers who are already paid a pittance out of the wages they are legally entitled to.’
Since 2013, around £8 million has been identified in back pay for 58,000 workers, with 1,500 employers fined a total of £5 million.
Unite assistant general secretary Steve Turner said: ‘If it hadn’t been for Unite’s campaign to expose ‘Victorian’ work practices at Sports Direct, then the Government’s name and shame list of non-payment of minimum wage rates would have looked very different.
‘The abusive work practices and non-payment of the minimum wage at Sports Direct would be continuing to this day.
‘Scandalously though, some long serving agency workers at Sports Direct are still owed a portion of their back pay, raising serious questions about how serious Government ministers are about enforcement.
‘With insecure and precarious work on the rise, the figures released by the Government are just the tip of the iceberg with bad bosses ripping workers off in the shadows away from the public glare.’
Jack Dromey, Shadow Minister for Labour, said: ‘Today’s announcement that 16,000 workers have been denied £1.7 million in pay by employers underpaying minimum wage rates is truly shameful for the Government.
‘The Government hasn’t done enough to stop employers denying millions of workers their rightful pay, which is grossly unfair to workers but also unfair to the businesses which play by the rules.’