Another 239 employers have been named and shamed by Government this week in the UK for underpaying the National Minimum Wage.
National chains such as Odeon & UCI Cinema Group and Wyevale Garden Centre have been identified as failing to pay their staff the correct amount in accordance with National Minimum Wage laws.
In total, it is estimated that as much as £1.44m is due in backpay to over 22,000 workers. The businesses in questions must also pay heavy fines to HM Revenue and Customs for their lack of compliance, totaling nearly £2m.
Wyevale Garden Centre owed £14,296.58 in back pay to two workers, £7,148.29 each.
A spokeswoman for the garden centre chain said: “These two isolated incidences involved two colleagues who live in accommodation within our garden centres. As their rent is paid via the payroll, this technically reduces the hourly rate to below the national minimum wage level.
“HMRC have confirmed that they are satisfied with our colleague pay structure but that a breach had technically occurred. As a responsible employer, we are committed to paying the NMW and have now made good the difference.”
The ShopWorks Workforce Management solution enables businesses to stay ahead of issues similar to Wyvale’s, ensuring that they are constantly in compliance with pay regulations. Admin users are notified if any staff member has fallen short of the minimum wage laws, allowing them to resolve the problem as it occurs.
The National Minimum Wage tool also automatically updates each staff members pay rate when there is a National Minimum Wage increase, as well as for staff who are required a pay rise due to their age.
Several hospitality, retail and service organisations were also named on the list. The earliest case of underpayment dated back to 2011, with the most recent happening this year. ShopWorks partner with businesses from all of these sections, not only helping them remain compliant, but also improve the time management for staff scheduling and reduce direct staff costs with a state-of-the-art budgeting module.
Since HMRC’s wage underpayment “naming and shaming” exercise began five years ago, more than 1,900 employers have been discovered breaching minimum wage laws and £8.4m in fines has been collected.
Business minister Andrew Griffiths said: “Our priority is making sure workers know their rights and are getting the pay they worked hard for. Employers who don’t do the right thing face fines as well as being hit with the bill for backpay.
“It is crucial that employers understand their responsibilities and workers know their rights around the minimum wage. That is why active enforcement and effective communication from government is so important.”
To find out how a bespoke Workforce Management solution could help your business save an average of 7% of your direct staffing costs, please contact us.