Named and shamed: East Mids companies failing to pay National Minimum or Living Wage

A Leicester recruitment firm which failed to pay its workers nearly £50,000 has been named as the biggest East Midlands offender for underpaying its workers the National Minimum or Living Wage.

The Department for Business, Energy and Industrial Strategy has published a list of 233 businesses that underpaid workers – which featured 16 companies from the East Midlands.

Pearson Anderson, a recruitment firm based on Burleys Way in Leicester failed to £49,800.41 to 169 workers last year.

Nationally, Argos has been named as by the far the biggest offender, after it was revealed that the firm underpaid £1,461,881.78 to 12,176 workers.

In all, More 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.

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.

Other East Midlands firms on the list are:
– Bass Electrical Limited, of Lincoln, which failed to pay £4,717.05 to 1 worker
– Knaptoft Hall Farm Limited, of Harborough, which failed to pay £3,525.97 to 1 worker
– Mr Mandeep Singh trading as Poseidon Fish Bar, Leicester, who failed to pay £2,479.36 to 3 workers
– Crown Pianos Limited, of Blidworth, which failed to pay £2,328.28 to 1 worker
– Costa Construction, of Leicester, which failed to pay £1,895.65 to 6 workers
– PC Coaches of Lincoln Limited, of Lincoln, which failed to pay £1,773.55 to 1 worker
– Tudor Manor Day Nursery, of Northampton, which failed to pay £1,029.30 to 1 worker
– K E Express Limited, of Church Gresley, which failed to pay £669.12 to 2 workers
– Harvey Luke Limited, of Derby, which failed to pay £473.69 to 3 workers
– Kingsthorpe Upper Crust Catering Services Limited, of Northampton, which failed to pay £347.21 to 3 workers
– Mr Adrian Simpson trading as Mayfields, of Nottingham, who failed to pay £283.45 to 1 worker
– Craymere Limited trading as Topknot, of Nottingham, which failed to pay £280.41 to 1 worker
– Mamas Masala Limited trading as Mamas Masala Kitchen, of Derby, which failed to pay £207.91 to 4 workers
– Washbrook Farm Limited, of Aston Le Walls, which failed to pay £135.65 to 1 worker
– Mrs Melanie Humphries trading as IMIJ Hair & Beauty Salon, of Mansfield, who failed to pay £108 to 2 workers

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 £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.”

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.

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