Government names and shames top companies

Sep

05

Government names and shames top companies

 

The Government has released a list of 233 companies who are failing to pay staff the National Minimum Wage (NMW) in an attempt to shame them into changing their ways.

Employers on the list have been fined a record £1.9 million by the Government and over 13,000 of the lowest paid workers will receive around £2 million in back pay as part of the Government backed scheme, which began in 2013.

With over 1,200 employers fined £4 million and more than 40,000 workers receiving back pay of around £6 million, the scheme has successfully identified failings in businesses across the UK.

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.  Today’s naming round identifies a record £2 million 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.”

Malicious or mistake?

We have added a list of 35 employers at the bottom of this article, many of which are smaller companies who may have made errors in calculating pay, rather than defrauding their employees.

Perhaps the biggest name on the list is Argos, who received a fine of £800,000 after admitting underpaying 37,000 staff earlier this year to the tune of £64 each. The company were caught out after requiring employees to attend mandatory briefings before their shifts, and keeping staff late to complete security searches, both of which they were not paid for.

Speaking about the incident John Rogers, chief executive of Argos, issued a statement:

“I am pleased to say the issue was resolved quickly, and processes have been updated to ensure this cannot happen again.”

Other common errors included:

  • Deducting money for uniforms from pay packets
  • Failure to account for overtime
  • Incorrectly paying workers apprentice rates

Speaking about the list Grahame Davies, Head of Business for Opsium employer support, said:

“The Government name and shame scheme has been running since 2013, and has identified over a thousand companies guilty of failing to pay their employees the NMW. With each passing year, the list seems to grow and that only shows that people still don’t fully understand their responsibilities when it comes to pay.

“The Government have made it clear and all accounts departments should be aware of the rates. Whether these are innocent mistakes or more deliberate actions to save money, the Government have remained clear in their stance that NMW is not an option and those companies who fail to pay, will be fined.”

National Minimum Wage

The current NMW is:

  • National Living Wage (25 years and over) – £7.50 per hour
  • 21-24 year olds – £7.05 per hour
  • 18-20 year olds – £5.60 per hour
  • 16-17 year olds – £4.05 per hour
  • Apprentice rate – £3.50 per hour

0-35 on the list...

Argos Limited

Failed to pay £1,461,881.78 to 12,176 workers

Pearson Anderson Limited

Failed to pay £49,800.41 to 169 workers

Fusion Hairdesign Limited

Failed to pay £24,352.90 to 6 workers

Nunthorpe Nurseries Group Limited

Failed to pay £22,831.38 to 118 workers

Vong's Welcome Limited trading as Vong's Hot Food Bar

Failed to pay £18,575.34 to 1 worker

Maughan Microcomputers Limited trading as Console Doctor

Failed to pay £15,010.89 to 3 workers

Islington Accommodation Services Limited

Failed to pay £14,447.82 to 1 worker

Mr Mohammed Yunas Chughtai, Mrs Azmat Ara Chughtai and Mr Aftab Chughtai trading as Aftabs

Failed to pay £14,142.26 to 1 worker

Rudan Limited trading as Hershesons

Failed to pay £14,141.06 to 7 workers

Mr Anthony Kenvig trading as Kenvig's Hair Marriott

Failed to pay £9,698.04 to 2 workers

Mr William Gareth Griffiths & Mrs Llinos Griffiths trading as Gareth Griffiths

Failed to pay £9,230.56 to 1 worker

Geoff Chapman trading as North Cowton Service Station

Failed to pay £8,229.11 to 3 workers

Miss Mackenzie Sanders trading as Filo Horses

Failed to pay £8,204.07 to 3 workers

Miss Reena Parmar trading as Antony Luka Hairdressing

Failed to pay £7,353.22 to 1 worker

Nightingales of Kidderminster Limited Failed to pay £6,895.75 to 9 workers
Wynyard Hall Limited trading as Wynyard Hall Failed to pay £6,040.05 to 3 workers
Mrs Dorothy Bello trading as Rising Stars Daycare & Shining Stars Kids Club Failed to pay £5,515.06 to 4 workers
Bull Construction Limited Failed to pay £4,998.79 to 1 worker
The Fish and Chip Ship Limited trading as McMonagles

Failed to pay £4,900.15 to 9 workers

DSL Accident Repair Limited Failed to pay £4,896.43 to 3 workers
Shores Homecare Limited Failed to pay £4,840.31 to 6 workers
Deborah Marsh and Kathryn Johnston trading as FX Hair & Beauty Failed to pay £4,790.72 to 1 worker
Bass Electrical Limited Failed to pay £4,717.05 to 1 worker
Airport Placements Limited Failed to pay £4,557.43 to 50 workers
Rainbow Room (Clarkston) Limited (name changed to JPTO Ltd) Failed to pay £4,532.94 to 21 workers
Eaglescliffe Gas Limited Failed to pay £4,492.03 to 1 worker
Idlewild Hairdressing Limited Failed to pay £4,491.02 to 2 workers
Emma's Angels Day Nursery Limited Failed to pay £4,178.89 to 5 workers
Francis John Hairdressing Ltd trading as Francis John Hairdressing Failed to pay £4,129.40 to 2 workers
Elite Hair & Beauty (North East) Limited trading as Elite Evolution Failed to pay £4,053.20 to 5 workers
Mr Mukesh Patela and Mrs Bhavna Patel trading as Eaton Lodge Care Home Failed to pay £4,026.44 to 5 workers
King's Summer Homes Limited Failed to pay £3,974.94 to 1 worker
Smiles Montessori Preschool (Bush Fair) Limited Failed to pay £3,904.90 to 3 workers
Miss Tracey Newnian trading as Tracey's Unisex Salon

Failed to pay £3,879.67 to 1 worker

Field & Rural Life Limited Failed to pay £3,606.09 to 2 workers

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