[UK] M&S and WH Smith fined for failing to pay minimum wage

In the UK, more than 200 companies - including high street retailers WH Smith, Marks & Spencer and Argos - have been fined for failing to pay minimum wage to their lowest-paid staff between 2017 and 2019, Reuters reports.

On June 21, the government announced that 202 businesses - from major highstreet names to sole traders and small businesses - had broken the law by underpaying around 63,000 workers.

The companies paid a combined £7 million in fines for the breaches, according to a Department for Business and Trade statement. In addition, the businesses paid around £4.9 million in arrears, a spokesperson told Reuters via email.

"Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff," Kevin Hollinrake - the Department for Business and Trade minister - said.

"Most businesses do the right thing and look after their employees, but we're sending a clear message to the minority who ignore the law: pay your staff properly or you'll face the consequences," Mr Hollinrake added.

WH Smith reportedly topped the list after failing to pay £1 million to 17,607 workers. M&S left workers £578,391 short, while Sainsbury's-owned Argos owes £480,094 to 10,399 employees, according to the statement.

An M&S spokesperson said the company was only named as the result of an unintentional technical issue from more than four years ago, adding that the problem was corrected as soon as it became aware of the issue.

"Our minimum hourly pay has never been below the national minimum wage, it is currently above it and no colleagues were ever underpaid because of this," the spokesperson added. 

The UK minimum wage increased by 9.7 per cent to £10.42 per hour in April.

In its statement, the government acknowledged that not all minimum wage underpayments were intentional, however, it added there was no excuse for underpaying workers.

A Sainsbury's spokesperson reportedly said that a payroll error was identified in 2018, which affected some Argos store workers and drivers and dated back to 2012 before it acquired Argos.

The spokesperson added that the issue was rectified and that the Argos hourly rate had been brought into line with Sainsbury's.

WH Smith’s claimed it had misinterpreted how the statutory wage regulations were applied to its uniform policy for staff working in its stores. "This was a genuine error and it was rectified immediately with all colleagues reimbursed in 2019," the company’s response said.

Source: Reuters

(Quotes via original reporting)

In the UK, more than 200 companies - including high street retailers WH Smith, Marks & Spencer and Argos - have been fined for failing to pay minimum wage to their lowest-paid staff between 2017 and 2019, Reuters reports.

On June 21, the government announced that 202 businesses - from major highstreet names to sole traders and small businesses - had broken the law by underpaying around 63,000 workers.

The companies paid a combined £7 million in fines for the breaches, according to a Department for Business and Trade statement. In addition, the businesses paid around £4.9 million in arrears, a spokesperson told Reuters via email.

"Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff," Kevin Hollinrake - the Department for Business and Trade minister - said.

"Most businesses do the right thing and look after their employees, but we're sending a clear message to the minority who ignore the law: pay your staff properly or you'll face the consequences," Mr Hollinrake added.

WH Smith reportedly topped the list after failing to pay £1 million to 17,607 workers. M&S left workers £578,391 short, while Sainsbury's-owned Argos owes £480,094 to 10,399 employees, according to the statement.

An M&S spokesperson said the company was only named as the result of an unintentional technical issue from more than four years ago, adding that the problem was corrected as soon as it became aware of the issue.

"Our minimum hourly pay has never been below the national minimum wage, it is currently above it and no colleagues were ever underpaid because of this," the spokesperson added. 

The UK minimum wage increased by 9.7 per cent to £10.42 per hour in April.

In its statement, the government acknowledged that not all minimum wage underpayments were intentional, however, it added there was no excuse for underpaying workers.

A Sainsbury's spokesperson reportedly said that a payroll error was identified in 2018, which affected some Argos store workers and drivers and dated back to 2012 before it acquired Argos.

The spokesperson added that the issue was rectified and that the Argos hourly rate had been brought into line with Sainsbury's.

WH Smith’s claimed it had misinterpreted how the statutory wage regulations were applied to its uniform policy for staff working in its stores. "This was a genuine error and it was rectified immediately with all colleagues reimbursed in 2019," the company’s response said.

Source: Reuters

(Quotes via original reporting)