Revealed: East Midlands companies underpaying minimum wage rates

Nine companies across the East Midlands have today been revealed as employers underpaying worker at least the National Minimum Wage and National Living Wage.

Sports Direct was the biggest regional offender, underpaying 383 workers a total of over £167,000.

Meanwhile, top spot among UK-wide firms forced to pay back pay for non-payment of minimum wage rates was employment agency The Best Connection, which supplies workers to Sports Direct’s Shirebrook warehouse. In second was the agency Transline, which was also embroiled in scandal at the retailer and since gone bust.

In total, The Department for Business, Energy and Industrial Strategy (BEIS) has named 260 employers for failing to pay 16,000 workers at least minimum wage rates.

Government investigators identified £1.7m in back pay for some of the UK’s lowest paid workers and fined employers £1.3m for underpayment.

The full list of companies underpaying workers is:

– SportsDirect.com Retail Limited, Bolsover, failed to pay £167,036.24 to 383 workers
– Eventful Temps Ltd., Leicester, failed to pay £3,087.52 to 39 workers
– Vernon Community College C.I.C., Nottingham, failed to pay £2,532.28 to 2 workers
– Smile and Implant Ltd., Leicester, failed to pay £1,917.04 to 1 worker
– Norella Limited trading as Alexsa, Mansfield NG18, failed to pay £1,566.28 to 2 workers
– Elenaz Limited trading as Ozmen Local, North East Derbyshire, failed to pay £702.16 to 1 worker
– Mr Karwan Kader Hassan trading as Best Hand Car Wash, Derby, failed to pay £695.90 to 3 workers
– The Recruitment & Employment Bureau Ltd, Mansfield NG18, failed to pay £223.20 to 1 worker
– Mr David Hill and Mrs Jayne Hill trading as Langwith Premier Store, Bolsover, failed to pay £172.61 to 1 worker

UK-wide, retail, hairdressing and hospitality businesses were among the most prolific offenders in this round. Common reasons for errors made include: failing to pay workers travelling between jobs, deducting money from pay for uniforms and not paying for overtime.

Business Minister Margot James said: “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.

“That’s why today we are naming hundreds of employers who have been short changing their workers; and to ensure there are consequences for their wallets as well as their reputation, we’ve levied millions in back pay and fines.”

Bryan Sanderson, chairman of the Low Pay Commission, said: “The Low Pay Commission’s conversations with employers suggest that the risk of being named is encouraging businesses to focus on compliance.

“Further, it is good to see that HMRC continues to target large employers who have underpaid a large number of workers, as well as cases involving only a few workers, where workers are at risk of the most serious exploitation. It is imperative that the government keeps up the pressure on all employers who commit breaches of minimum wage law.”

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