Tesco, B&Q and Whitbread scolded in minimum wage crackdown
Labour’s new workers’ rights police force has scolded Tesco, B&Q and Whitbread, and more than 600 other firms, for failing to pay the minimum wage.
The Fair Work Agency has published the names of 658 companies which have been fined £7m and forced to return £4m to more than 27,000 workers who have not been paid the legal rate.
Announcing the crackdown, business secretary Jonathan Reynolds said: “Short-changing your staff isn’t a shortcut to success, and we are determined to stamp it out.”
Tesco was among the businesses singled out by the new workers’ rights police, after the grocer failed to pay £227.84 to one worker.
Home improvement retailer B&Q, which is owned by FTSE-100-listed Kingfisher, was ordered to pay back nearly £457,000 to 4,530 workers who the government said have not been paid the minimum wage.
Whitbread, the FTSE 100 hospitality firm which owns Premier Inn, failed to pay nearly £4,200 to 342 employees, the Fair Work Agency said.
Two franchises of burger titan McDonald’s, based in Essex and Warwickshire, were made to pay back more than £29,000 to 797 workers in total.
Outsourcing giant Serco, fast-food chain Five Guys and private security firm G4S were also named among the companies which failed to pay minimum wage.
Workers’ rights police flexes muscles
Kate Dearden, minister for the future of work, said: “Underpaying your staff is illegal, and we will not let workers foot the bill for their boss failing to follow the rules.
“We’re making sure workers get the hard-earned pay they deserve, and where employers fall short, they will be held to account.”
The Fair Work Agency was set up in April under the Employment Rights Act and has been given new powers to ensure companies pay the minimum wage and comply with the government’s new workers’ rights clampdown.
The agency has powers to search individuals and work premises, and seize evidence if it suspects a firm has fallen foul of employment law.
Matthew Taylor, chair of the agency’s advisory board, said: “This naming round is an important reminder that paying the minimum wage is not optional — it is the law.
“Most employers want to do the right thing, and we will support them to comply, but those who fall short should expect robust enforcement to protect workers and maintain a fair playing field for responsible businesses.”
A spokesperson for B&Q said its minimum wage shortfalls were unintentional, adding that the affected workers were paid in full in July last year. A Tesco spokesperson said it was “sorry” for an “isolated administrative error”. They added: “This was quickly resolved and we have taken steps to make sure this doesn’t happen again.”
A Serco spokesperson said: “A technical error affected one contract more than two years ago and related to salary sacrifice schemes. It was quickly rectified once identified and all employees were reimbursed in full.”
The McDonald’s franchisees apologised to all affected employees and took steps to resolve the pay issues as soon as they were made aware of them, a spokesperson for the company said.