Business & Investment

Tesco is at the top of the list as a shameful fraudulent employer named for not paying the minimum wage

About 140 companies, including some of the UK’s largest household names, are named and embarrassed today for not paying workers the minimum wage.

Surveyed between 2016 and 2018, 139 nominated companies were unable to pay £ 6.7m to a total of more than 95,000 workers due to a serious breach of employment law. Problematic companies range in size from small businesses to large multinationals that employ thousands of people across the UK.

Protecting and enforcing workers’ rights is a priority of this government. While the vast majority of companies comply with the law and uphold workers’ rights, publishing the list warns fraudulent employers that the government will take action against those who fail to pay their employees properly. The purpose is to do.

This is the first time since 2018 that the government has nominated and embarrassed companies for failing to pay the national minimum wage after reforming the process to target only the worst criminals.

The top criminal was Tess Cost Limited, which was found to be unable to pay £ 5,096,946.13 to 78,199 workers.

Business Minister Paul Scarley said: “Payment of the minimum wage is not voluntary, it is a law. It is never acceptable for an employer to change a worker in the short term, but you will see a huge household name on this list that you should be absolutely familiar with. Is especially disappointing.

“This is a wake-up call to the named employer and should serve as a reminder to everyone of the importance of paying what workers are legally entitled to.

“Undoubtedly, anyone who does not follow the minimum wage rules will be caught and forced to pay.”

One of the main causes of minimum wage violations is that low-wage employees are now paying for the work of getting into wage packets, such as uniforms, training, and parking payments.

Also, some employers were unable to raise their employees’ wages after their birthday, requiring them to move to another national minimum wage range.

Employers who pay workers lower than the minimum wage must repay workers with unpaid wages at the current minimum wage rate. They also face large fines of up to 200% of delinquency charges (up to £ 10,000 per worker), which are paid to the government. The companies nominated today were forced to repay the workers and pay fines.

Not all violations of the minimum wage rules are intentional, but it is the responsibility of all employers to ensure that they comply with the law. The round also publishes a short educational bulletin that summarizes general guidance on common reasons for paying workers and underpaying. This helps prevent workers from changing in the short term in the future.

The company named by the government today was notified of underpayments between September 2016 and July 2018 as a result of an HMRC investigation.

Last month, the government announced an increase in national living wage and national minimum wage measurements. This will come into effect in April 2021. All workers, regardless of age or occupation, are entitled to the national minimum wage.

Tesco is at the top of the list as a shameful fraudulent employer named for not paying the minimum wage Tesco is at the top of the list as a shameful fraudulent employer named for not paying the minimum wage

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