September 25th, 2016

Four city companies named and shamed for paying employees less than minimum wage

Four city companies named and shamed for paying employees less than minimum wage Four city companies named and shamed for paying employees less than minimum wage
Coventry Observer Newspaper
Updated: 3:53 pm, Aug 12, 2016

FOUR COVENTRY-based companies have been named and shamed for failing to pay their workers the National Minimum Wage.

On a list published by the Government’s department of Business, Energy and Industrial Strategy (BEIS), 198 companies have been publicly named for collectively owing employees over £466,000 in owed wages.

Among them were four Coventry firms – including the third-worst offender, Regis UK Ltd.

The company based at Lynch Gate House in Cannon Park, owns and operates hair, beauty and retail product salons across the country, and owed £25,712.19 to 604 workers.

Caroline Collins, HR Manager, at Regis UK Ltd, said: “We apologise sincerely for any inconvenience caused to our employees.

“Unfortunately the underpayments were due to a system error when calculating NMW.

“The payroll system has now been reprogrammed and the issue has been resolved.

“We have worked with HMRC to ensure the small percentage of our employees affected have all been paid the amount they are owed.”

Other Coventry-based companies included caterer Suzy Mcs Corporate Catering Ltd, which owed one employee £392; care provider Consummate Care UK Ltd, which owed £201 to one worker; and catering company Plum Buffets Ltd, which owed one employee £156.

All the money owed to the workers of all 198 companies has since been paid back to them.

In line with the current National Minimum Wage, people aged 21-24 are entitled to £6.70 per hour, £5.30 per hour for 18 to 20-year-olds, and £3.87 for 16 to 17-year-olds.

And since the introduction of the National Living Wage in April this year, everyone over the age of 25 is now entitled to £7.20 per hour.

Business minister, Margot James, said: “This Government is determined to build an economy that works for everyone, not just the privileged few.

“That means making sure everyone gets paid the wages they are owed – including our new, higher, National Living Wage.

“It is not acceptable that some employers fail to pay at least the minimum wage their workers are entitled to.

“So we’ll continue to crack down on those who ignore the law, including by naming and shaming them.”

Since the scheme was introduced in October 2013, 688 employers have been named and shamed, with total arrears of more than £3.5 million.

By law, it is an employer’s responsibility to be aware of the different minimum wage rates depending on the circumstances of their workers – and to make sure all eligible workers are paid at least the minimum rate they are entitled to.

The National Living Wage will be enforced equally robustly alongside the National Minimum Wage.

Visit www.acas.org.uk/nmw to find out more about the National Minimum Wage.

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