Iceland battle HMRC over staff wage dispute.

Jan 4, 2019

Iceland Foods has been caught up in a dispute with HMRC over pay for staff failing to meet the minimum wage. 

A Christmas savings scheme was introduced by the company to help staff prepare for the costly Christmas period.

The chief executive and founder of Iceland Foods has described the dispute as “just madness”.

Under the scheme, staff could voluntarily set aside money from their weekly wages and claim it back later.

However, HMRC has told the company the payment means staff are technically falling below the minimum wage.

Iceland founder Malcolm Walker intends to fight the HMRC claim, which was first reported in the Times. If it loses, the retailer could face a bill of £21m.

With technology constantly improving, there has become a demand for scheduled staff to access wages as and when it is required. 

Businesses are now looking for ways to help staff manage their finances throughout the year in order to prevent uncontrollable debt.

We are currently producing an in depth report on the technology to improve staff pay that we will publish later in the year, but feel free to get in touch if you would like to know more.


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