More than 200 UK businesses named as breaking minimum wage laws

The firms were named and shamed for their inability to comply

Author: Rory GannonPublished 9th Dec 2021

Over 200 different companies based in the UK have been exposed by the government for breaking minimum wage laws.

High street staples such as Waterstones and House of Fraser are among the 208 firms that did not comply to minimum wage laws, costing their workers £1.2 million in lost wages.

The firms were publicly named and shamed on a list published on the government's website for their failure to pay workers properly.

The most common issue amongst the businesses included taking money from worker's wages in order to pay for work-related expenses, such as uniforms. This in breach of protections for the money those on minimum wages would receive.

Of the 208 businesses listed by the government, 37% deducted their workers' wages in order to fund the outgoings.

Other violations included the refusal of pay during mandatory training or trial shifts, in which 29% of companies fell into.

In addition, 11% of the named firms failed to increase their minimum wage pay, paying staff at the wrong rate.

In total, over 12,000 workers across the 208 companies were left short-changed due to the practices.

Reaction and response to the list

The list has caused outrage, with unions saying that there needs to be fairness in the workplace and pay.

Bryan Sanderson, chairman of the Low Pay Commission, 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."

Responding to the publication of the list, the current owners of House of Fraser, Frasers Group, said: "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."

James Daunt, CEO of Waterstones added: “The breach was a technical one caused by salary sacrifice arrangements with employees in the period 2016-2018. It was remedied immediately it was identified.

"Salary sacrifice schemes are to the advantage of the employee and there was no intention that this cause pay technically to fall below the minimum wage.”

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