Hospitality businesses among ‘most prolific' in short-changing employees

Industry
08/12/2017 - 07:00
A number of hospitality businesses have been named among 260 employers by Government for not paying staff the National Minimum Wage and National Living Wage.

The sector was described as one of the “most prolific” in underpaying employees, along with retail and hairdressing.

In total, across all industries, the The Department for Business, Energy and Industrial Strategy (BEIS) indentified 16,000 short-changed workers who will be paid back a total of  £1.7m while the 260 employers will be fined £1.3m for underpaying.

The majority of hospitality businesses named were small, independent companies underpaying one or two members of staff.

A Subway branch in Bournemouth operated by Subway South Limited was on the list as it reportedly failed to pay £1,361.38 to two workers.

Common reasons cited for payroll errors included failing to pay workers travelling between jobs, deducting money from pay for uniforms and not paying for overtime.

Business Minister Margot James said: "There is no excuse for not paying staff the wages they're entitled to and the government will come down hard on businesses that break the rules.

“That’s why today we are naming hundreds of employers who have been short changing their workers; and to ensure there are consequences for their wallets as well as their reputation, we’ve levied millions in back pay and fines.”

Since launching its investigative scheme in 2013, the BEIS has identified £8m in back pay for 58,000 workers, with 1,500 employers fined a total of £5m.

The current National Living Wage for men and women aged over 25 is £7.50 an hour, £7.05 for 21-24 year-olds and £5.60 for those aged 18-20.

The wage for workers aged 25 and older is expected to rise to £9 per hour by 2020.

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