More than 13,000 of the UK’s lowest paid workers to receive back pay thanks to UK Government investigationsMore than 13,000 of the UK’s lowest paid workers will get around £2m in back pay as part of the government’s scheme to name employers who have failed to pay National Minimum Wage and Living Wage.
The Department for Business, Energy and Industrial Strategy published a list of 233 businesses that underpaid workers.
As well as paying back staff the money owed, employers on the list have been fined a record £1.9m by the government. Retail, hairdressing and hospitality businesses were among the most prolific offenders.
Since 2013, the scheme has identified £6m back pay for 40,000 workers, with 1,200 employers fined £4m.
Secretary of State for Wales Alun Cairns said:
“While most employers get it right, it is simply not acceptable that some employers in Wales are failing to pay at least the minimum wage their workers are entitled to.
“The UK Government is determined to make sure everybody in work receives a fair wage and to building an economy that works for all. April’s increase in the national minimum and living wage rates is putting more money into the pockets of Wales’ lowest paid workers than ever before.
“Excuses for not paying employees what they are legally owed will not be tolerated.”
Business Minister Margot James said:
“It is against the law to pay workers less than legal minimum wage rates, short-changing ordinary working people and undercutting honest employers.
“Naming round identifies a record £2m of back pay for workers and sends the clear message to employers that the government will come down hard on those who break the law.”
Common errors made by employers in this round included deducting money from pay packets to pay for uniforms, failure to account for overtime hours, and wrongly paying apprentice rates to workers.
Melissa Tatton, Director at HM Revenue and Customs said:
“HMRC is committed to getting money back into the pockets of underpaid workers, and continues to crack down on employers who ignore the law.
“Those not paying workers the National Minimum or Living Wage can expect to face the consequences.”
The 17 employers in Wales named are:
- Mr William Gareth Griffiths & Mrs Llinos Griffiths trading as Gareth Griffiths, Ceredigion SY23, failed to pay £9,230.56 to 1 worker.
- Miss Tracey Newnian trading as Tracey’s Unisex Salon, Carmarthenshire SA31, failed to pay £3,879.67 to 1 worker.
- Thai Lounge (Cardiff) Limited trading as Thai Lounge, Cardiff CF14, failed to pay £2,527.27 to 4 workers.
- Bluestone Resorts Limited, Pembrokeshire SA67, failed to pay £2,378.98 to 2
- Mr Paul Isaac and Mrs Hayley Isaac trading as Refit Design Shopfitters, Neath Port Talbot SA10, failed to pay £1,941.04 to 1 worker.
- Burlesque Hair Company Limited, Newport NP20, failed to pay £1,672.58 to 3 workers.
- Celtic Community Services Limited, Rhondda Cynon Taf CF72, failed to pay £1,521.44 to 5 workers.
- Kingston City Properties Limited, Cardiff CF24, failed to pay £626.01 to 1 worker.
- The Burrows Day Care Nursery (Porthcawl) Limited, Bridgend CF36, failed to pay £550.30 to 4 workers.
- The Wild Swan Limited, Swansea SA1, failed to pay £380.71 to 4 workers.
- Mr Talal Al-Arab and Mr Hani Hussain trading as Bella Pizza, Gwynedd LL55, failed to pay £377.25 to 1 worker.
- Ms Mandy James trading as Prince of Wales Treorchy, Rhondda Cynon Taf CF42, failed to pay £254.34 to 1 worker.
- M Camilleri & Sons Roofing Limited, Vale of Glamorgan CF64, failed to pay £1,150.68 to 11 workers.
- Adeiladwyr Eryri Builders CYF, Gwynedd LL52, failed to pay £864 to 1 worker
- Mr Dylan Rhys Roberts trading as D R Roberts Plumbing & Heating, Denbighshire LL15, failed to pay £735.58 to 1 worker.
- Whistlestop Café (North Wales) Ltd trading as Whistlestop Café, Denbighshire LL18, failed to pay £433.68 to 1 worker.
- Ruthin Castle Hotel Ltd, Denbighshire LL15, failed to pay £2,182.49 to 1 worker.
There are currently around 2,000 open cases which HMRC is investigating. Eligible employers will be named and shamed after their cases have been closed.
The government has committed £25.3m for minimum wage enforcement in 2017/18, as well as a £1.7m awareness campaign earlier this year.
David Metcalf, Director of Labour Market Enforcement, released his introductory report in July 2017, stating that he would be working with enforcement agencies to further crackdown on rogue employers.
For more information about your pay, or if you think you might be being underpaid, get advice and guidance here.
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