Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

National living wageLatest NewsPay & benefitsMinimum wagePayroll

Matalan and House of Fraser among firms named for wage errors

by Ashleigh Webber 9 Dec 2021
by Ashleigh Webber 9 Dec 2021 Mark D Bailey / Shutterstock.com
Mark D Bailey / Shutterstock.com

More than 200 organisations have been exposed by the government for failing to pay employees the minimum wage, including retailers Matalan and House of Fraser.

In its latest round of “naming and shaming” employers that have breached national minimum wage regulations, the Department for Business, Energy and Industrial Strategy highlighted 208 organisations that owed about 12,000 workers a total of £1.2m in wage arrears.

The most common error identified involved deductions that took employees’ pay below the legal minimum, including staff being left out of pocket because they had to comply with a dress code. More than a third (37%) of employers named today breached the regulations in this way.

Meanwhile, over a quarter (29%) did not pay staff for some of their working time, such as mandatory training, trial shifts or for travel time; 16% did not pay the correct rate to apprentices; and 11% failed to increase wages in line with annual increases to the national minimum wage or national living wage rates, or paid employees the incorrect rate for their age group.

“Today’s 208 businesses, whatever their size, should know better than to short-change hard-working employees, regardless of whether it was intentional or not,” said minister for labour markets Paul Scully.

“With Christmas fast approaching, it’s more important than ever that cash is not withheld from the pockets of workers. So don’t be a scrooge – pay your staff properly.”

Minimum wage

Tougher deterrents needed to stop minimum wage breaches

National living wage and national minimum wage rates confirmed for April 2022

Whistleblower minimum wage complaints at lowest level in four years

Among the employers named in this latest round of reporting is department store chain House of Fraser, which was found to have underpaid 354 workers to the tune of £16,235.19 – an average of £45.86 per affected employee.

A Frasers Group spokesperson made it clear that the breaches related to the period before it acquired House of Fraser out of administration.

The spokesperson said: “House of Fraser Limited has been named in the list of 208 businesses which have apparently breached National Minimum Wage rules between the period of 2012 to 2017.

“It should be made clear that Frasers Group plc only purchased the assets of House of Fraser out of administration (saving countless jobs) in August 2018. This was long after the date when these breaches are said to have happened. However, by acquiring those assets the claims are said to have passed to the new business owner.

“In short, these breaches are historic and relate to the activities of the old House of Fraser company that is now in administration and is nothing at all to do with any activities of the new House of Fraser business that is owned by Frasers Group.”

Clothing and homeware retailer Matalan was found to have owed 16 workers a total of £1,634.48 – an average of £102.16 each.

A Matalan spokesperson told Personnel Today the underpayment was an administrative error that the company noticed and reported to HMRC in March 2018.

“This relates to an historic administrative correction, regarding a very small number of employees, which we proactively identified and resolved with the relevant personnel and notified HMRC back in 2018,” said a statement from Matalan.

“Our people are at the heart of our business and we are committed to operating at the highest standards to ensure Matalan is a great and rewarding place to work and grow.”

The organisation with the largest number of workers affected in this latest round of reporting was The Challenge Network, a charity that went into administration and subsequently closed in 2019. Some 3,600 workers were underpaid, totalling £154,682.33, averaging at £42.97 per worker.

Today’s 208 businesses, whatever their size, should know better than to short-change hard-working employees, regardless of whether it was intentional or not” – Paul Scully, labour markets minister

Facilities management firm Mitie was found to have underpaid 91 workers, with arrears totalling £17,893.98 (£191.64 per worker, on average).

It told Personnel Today that an investigation by HMRC that concluded in March 2019 found Mitie to be non-compliant in two areas, both of which HMRC acknowledged were “accidental and technical in nature”.

The first was a deduction of a £1 admin fee in respect of setting up payments to the government child support agency and the second an incorrect method of calculating an hourly rate for a salaried worker. The company said it had taken steps to ensure the errors would not reoccur.

Mitie said in a statement: “HMRC accept this was a technical breach, so we are disappointed to have been included on this list.”

Organisations that breach minimum wage rules must pay staff what they are owed at current national minimum wage and national living wage rates, and also face financial penalties of up to 200% of arrears, which are paid to the government.

In April 2022, the national living wage will increase by 6.6% from £8.91 to £9.50. New national minimum wage and apprentice rates will also take effect.

Since 2015, the government’s budget for minimum wage enforcement has doubled, with employers having been ordered repay over £100 million to one million workers.

The government has released an educational bulletin to help employers meet their minimum wage obligations.

Bryan Sanderson, chair of the Low Pay Commission, which advises the government on minimum wage rates, said: “The minimum wage is a success story welcomed by employees and employers alike, but it only works if everyone without exception obeys the law.

“We hope this latest naming round can continue to raise awareness of the most common mistakes businesses make and help protect low-paid workers from unfair treatment.”

Payroll opportunities on Personnel Today


Browse more payroll jobs

Ashleigh Webber
Ashleigh Webber

Ashleigh is editor at OHW+ and HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support. Prior to joining Personnel Today in 2018, she covered the road transport sector for Commercial Motor and Motor Transport magazines, touching on some of the employment and wellbeing issues experienced by those in road haulage.

previous post
Omicron: Working from home guidance confirmed in England
next post
Study to gauge impact of home working on employees with disabilities

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

Underpayment not reported due to ‘fear and insecurity’

25 Jul 2022

Pay all care workers a £10.50 hourly minimum...

30 Jun 2022

Six findings from the national living wage review

22 Jun 2022

Bolt drivers strike as union launches workers’ rights...

15 Jun 2022

Oxford study highlights best gig economy firms to...

9 Jun 2022

‘Real’ living wage announcement to be brought forward

30 May 2022

P&O Ferries boss denies reputational damage after mass...

27 May 2022

‘Small spike’ in minimum wage underpayment among 20-24...

13 May 2022

Living Wage employers pass 10,000 mark

11 May 2022

P&O Ferries told to return £11m furlough money...

28 Apr 2022
  • 6 reasons why work-based learning is better than traditional training PROMOTED | A recent Fortune/Deloitte survey found that 71% of CEOs are anticipating that this year’s biggest business disrupter...Read more
  • Strengthening Scotland’s public services through virtual recruiting PROMOTED | This website is Scotland's go-to place for job seekers looking to apply for roles in public services...Read more
  • What’s next for L&D? Enter Alchemist… PROMOTED | It’s time to turn off the tedious and get ready for interactive and immersive learning experiences...Read more
  • Simple mistakes are blighting the onboarding experience PROMOTED | The onboarding of new hires is a company’s best chance...Read more
  • Preventing Burnout: How can HR help key workers get the right help? PROMOTED | Workplace wellbeing may seem a distant memory...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+