Alan McCormack | Senior Associate

Named and Shamed!

Wagamama has been fined for underpaying minimum wage workers.

There were among 43 employers in the hospitality sector on the government’s hit list of guilty firms breaking the law by not paying staff National Minimum Wage for a variety of reasons. Failing to pay workers for travelling between jobs, not paying overtime, and deducting money for uniforms were some of the reasons for the underpayments.

The latest list which is the 14th published by the Government, is ahead of an increase on 1 April 2018 when the National Minimum Wage will increase from £7.50 to £7.83 per hour.

Marriott Hotels came in second, failing to pay £71,722.93 to 279 workers, while TGI Friday’s did not pay £59,347.64 to 2,302 workers. Other offenders include Stoke City Football Club, Birmingham City Football Club and rugby clubs St Helens and London Irish.

The Charity the National Society For Epilepsy was also named on the list which was topped by Wagamama who failed to pay a shocking  £133,212 to 2,630 workers – the most of any of the companies identified.

What has been made clear is that this less than just approach is not tolerated. Business Minister Andrew Griffiths said: “There are no excuses for short-changing workers. This is an absolute red line for this Government.”

In its response to the Matthew Taylor Review of the gig economy called Good Work, the government has already announced plans to give all workers the right to a payslip.

It said that would make it easier for 300,000 workers to check that they were being paid the legal minimum.

Later this month, the government will launch an awareness campaign for the new minimum wage rates. Employers can be fined up to twice the total wage shortfall, subject to a maximum of £20,000 per worker.

If you are an employee who thinks that they are not being paid the National Minimum Wage or an employer who has any concerns in relation to paying the National Minimum Wage then please contact us online by clicking here or speak to a member of our specialist team on 0333 222 1855.

Alan McCormack

Alan McCormack

Employment Law Team

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