House of Fraser, Matalan, and Waterstones are amongst 208 employers who have been named and shamed for failing to pay their employees at least the National Minimum Wage and National Living Wage.
The 208 employers listed is an increase on the 191 employers who were named and shamed for failing to pay the correct amount in August 2021.
Named And Shamed
208 employers have been named and shamed by the Department for Business, Energy and Industrial Strategy (BEIS) for a variety of breaches of the legal obligation to pay employees at the very least the National Minimum Wage and National Living Wage.
The latest list includes many very well known employers, including the House of Fraser, Matalan, Waterstones, Schuh, Greencore, The Tanning Shop, Nike Group Hotels, and London General Transport Services.
Approximately 12,000 workers were found to have been underpaid around £1.2 million by the 208 employers named and shamed, with roughly £2 million in fines being imposed
The top 10 of the 208 employers named and shamed on the list were as follows:-
- The Challenge Network – 3,600 employees were underpaid a total £154,682.33
- Mr Rupert Galliers-Pratt – owed £64,094.37 in back pay to 7 workers
- The Feel Good Group Limited (t/a The Tanning Shop) – 355 workers were underpaid a total of £34,738.83
- Belmont Day Nursery Ltd – £31,599.90 was owed in back pay to 11 workers
- Hanmi Gallery Limited – 8 workers were underpaid a total of £28,999.51
- J E Beale Public Limited Company – £25,005.67 was owed as back pay to 1,177 workers
- Nike Group Hotels Limited (t/a Coppid Beech Hotel) – 138 workers were underpaid a total £24,862.62
- Mere Golf & Country Club Limited – £24,337.65 was owed in back pay to 64 workers
- Ewart Aberdeen Properties Limited (t/a Crowne Plaza & Holiday Inn Express Aberdeen Airport): previously called Dominvs Project Company Limited – 76 workers were underpaid a total of £23,868.72
- Magnum Care Limited – £22,711.44 was owed in back pay to 174 workers
In terms of those employers in the top 10, the Challenge Network went into liquidation on the 26th May 2020 and J E Beale Public Limited Company went into administration on the 20th January 2020.
Of the breaches that brought about non-compliance with the requirement to pay the National Minimum Wage and the National Living Wage, the issue which yielded the largest number of breaches proportionately (37%) related to reductions, such as deductions made to provide employees with uniforms to comply with a dress code.
Other breaches related to unpaid working time (29%), such as in relation to training, paying the wrong amount to apprentices (16%), and paying the wrong rate (11%)
Reaction
One of the employers who was named and shamed was the Mere Golf & Country Club Limited. According to the Knutsford Guardian, the Club "was invited to make a statement but declined to comment."
A representative for the owners of the House of Fraser, which was found to have underpaid 354 employers a total of £16,235.19, stated: "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."
Meanwhile, a spokesperson for Waterstones, which underpaid 58 workers £8,689.54, responded to the revelations by stating: "The breach was a technical one caused by salary sacrifice arrangements with employees in the period 2016-2018. It was remedied immediately when it was identified. Salary sacrifice schemes are to the advantage of the employee and there was no intention that this cause pay technically to fall below the minimum wage."
Commenting upon the new named and shamed list, the 18th to be published to date, Minister for Labour Markets, Paul Scully, stated: "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.....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."
