With the National Minimum Wage increasing each year, businesses are being pressured to ensure they keep up to date with staff payments. The annual budget, released in November, detailed that the next increase in April, will reach £7.83 – more than a 20% rise.
The government have already exposed a number of businesses, predominantly in the Retail, Leisure and Hospitality sectors, who have failed to implement the updated minimum wage for their staff.
Most notably, John Lewis and Argos were highlighted as household names who failed to pay the minimum amount to some staff members. This week the government have released the latest culprits for failure to meet the necessary requirements. The list of some 260 companies comprises 16,000 workers who have been underpaid by a total of £1.7 million. Topping the list this time is The Best Connection Group Ltd, who failed to pay 2558 of their workers a total of £469,273.83. Primark and Sports Direct were also named among the top five offenders.
Since 2013, the scheme has identified £8 million in back pay for 58,000 workers. 1,500 employers have been fined a total of £5 million for breaking the law and not paying their workers correctly. The government’s Business Minister Margot James comment: “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.”
Charles Adamson, Managing Director of the London based Consultants Juice, said: “Sports Direct have been in hot water already this year with their stringent zero-hour contracts and lack of care for staff, so it is surprising that they haven’t made a considerable effort to rectify another staff related issue.”
“Too many businesses are being named and shamed for not providing staff with the minimum wage.”
ShopWorks offer a complete Workforce Management (WFM) solution that includes a bespoke compliance module, to ensure that you are always up to date with the required regulations including: national minimum wage, working time directive, EU immigration regulations and anything else that may arise.
This is complimented by the budgeting module, so that you can set pre-determined budgets for each store. These, plus the many other features offered by the staff scheduling specialists will help you benefit from as much as 7% savings on direct staffing costs.
To see how your business can benefit from a bespoke Workforce Management solution, let us know who you are and we will arrange a 15 minute demo to prove how our platform will help you save on your staff costs.