Named and shamed: Argos fail to pay NMW

The latest list of employers who have failed to meet National Minimum Wage legislation has been published by HMRC.

Argos which is made up of 233 employers has topped the “name and shame” list. The retailer which is owned by Sainsburys, have been hit with a fine of £800,000 after admitting a mistake they made early 2017 which resulted in 37,000 staff members being underpaid.

This came after the company required their employees to attend briefings before their shift started, these were unpaid. As well as, a security search at the end of shift which also went unpaid.

The Chief Executive of Argos, John Rogers stated: “Processes have been updated to ensure this cannot happen again”.

Other errors include, deducting money from wages to pay for staff uniforms, failure to account for overtime and wrongly paying apprentices.

The Department for Business, Energy and Industrial Strategy displayed that common offenders were retailers, hairdressers and the hospitality industry.

Current rates

As of April 2017, the rate for 25 and over is £7.50, 21-25: £7.05, 18-20: £5.60, under 18: £4.05 and apprentice: £3.50.

Frances O’Grady, General Secretary of the TUC stated: “We know there are more wage-dodging employers out there. TUC research suggests there are at least a quarter of a million workers being cheated out of the minimum wage.”

The director of HMRC, Mellissa Tatton said the “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.”

How Employment Law Services (ELS) Can Help Employers

Employers concerned about any of the issues raised in this article can take advantage of Employment Law Services (ELS) free consultation service – call us today to arrange your free consultation – 0800 612 4772.

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