Gym group tops the list of Yorkshire and Humber firms underpaying minimum wage workers
The government has today named and shamed nearly 180 employers for underpaying more than 9,000 minimum wage workers by £1.1m.
Restaurant chain Wagamama was named as the biggest offender, failing to pay £133,212.42 to 2,630 workers.
In Yorkshire and the Humber, there are more than ten firms listed, with national gym company Xercise4less, which is headquartered in Leeds, topping the regional list after failing to pay more than £54,000 to 240 of its staff.
Yorkshire and Humber list:
Wright Leisure Limited, trading as Xercise4less, Leeds LS4, failed to pay £54,290.37 to 240 workers
Bridge End House Nursery Limited, Calderdale HD6, failed to pay £41,938.73 to 2 workers
Atkins Hotels Limited, trading as The Yorke Arms (previous ownership), Harrogate HG3, failed to pay £7,241.82 to 3 workers
Pink Innovations Ltd, Kingston upon Hull, City of HU4, failed to pay £3,482.83 to 5 workers
The Blue Bicycle (York) Limited, trading as The Blue Bicycle, York YO1, failed to pay £3,479.46 to 2 workers
Trinity Pre-School, trading as Trinity Children’s Centre Nursery & Out of School Club, Kirklees WF14, failed to pay £2,612.06 to 3 workers
Twinkles (Leeds) Limited, Leeds LS2, failed to pay £1,617.87 to 8 workers
Fosters Bakery (Staincross) Limited, Barnsley S75, failed to pay £1,074.93 to 1 worker
Mumtaz Leeds Limited, trading as Mumtaz, Leeds LS10, failed to pay £540 to 1 worker
4TheHouse Limited, Leeds LS14, failed to pay £288.1 to 1 worker
Ms Karly Skerman and Mr Ray Booth, trading as Billy Rays Store, East Riding of Yorkshire YO15, failed to pay £161.67 to 1 worker
Carl Atkinson, Head of HR at Xercise4Less, said: “In a routine review of pay processes, HMRC advised of a technical inaccuracy in worker classifications that affected some of our employees between April 2015 and March 2016. This was unintentional, and we moved quickly to follow HMRC guidance. We contacted all current and former employees and the issue has now been resolved.
“As a responsible employer, we’re committed to staff wellbeing. As part of this commitment, front line employees are paid at least seven percent more than the national living wage, with salary and performance reviews conducted regularly.
“Xercise4Less is wholly committed to complying with the complexities of the regulations and we understand the strict liabilities for non-compliance, however unintentional. We have been working with HMRC and have taken steps to ensure that worker classifications are correct.”
As well as recovering backpay for 9,200 workers, the Government also fined the employers a total of £1.3m in penalties for breaking national minimum wage laws.
Today’s list publication comes ahead of the next rate rise on 1 April, when the National Living Wage will go up from £7.50 to £7.83 per hour. Apprentices under the age of 19 and those in the first year of their apprenticeship will benefit from a record 5.7% rise.
Business Minister Andrew Griffiths said: “The world of work is changing and we have set out our plans to give millions of workers enhanced rights to ensure everyone is paid and treated fairly in the workplace.
“There are no excuses for short-changing workers. This is an absolute red line for this government and employers who cross it will get caught – not only are they forced to pay back every penny but they are also fined up to 200% of wages owed.
Today’s naming round serves as a sharp reminder to employers to get their house in order ahead of minimum wage rate rises on 1 April.
Bryan Sanderson, Chairman of the Low Pay Commission (LPC), said: “As the National Living Wage and National Minimum Wage rates rise on 1 April, it is vital that workers understand their rights, and employers their obligations.
“The Low Pay Commission is pleased to see the government maintaining the momentum of its minimum wage enforcement.
“The recent announcement that all workers will have a right to payslips stating the hours they have worked – an idea originally proposed by the LPC – is a positive step.”
