Highland businesses named for failing to pay staff minimum wage
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Several Highland businesses have been named by the UK Government for failing to pay the National Minimum Wage (NMW) to the lowest paid workers.
The list released today includes over 200 UK employers, that were in breach of the National Minimum Wage law, which left 63,000 workers out of pocket in the period from 2017 - 2019.
The businesses named in the list have since paid back what they owe to their staff and have also faced financial penalties, but the UK Government says that it is releasing the list now to raise awareness of underpayment and to help protect minimum wage workers.
Businesses operating the Highlands and named on the list include:
- Loganair Limited failed to pay £24367 to 43 workers.
- Arnold Clark Automobiles Limited, failed to pay £12215.56 to 48 workers
- LDH Hotels Limited, trading as The Tongue Hotel, failed to pay £771.48 to 11 workers
- WH Smith Retail Holdings Limited, failed to pay £1,017,693.36 to 17,607 workers
- Lloyds Pharmacy Limited, failed to pay £903,307.47 to 7,916 workers
- The House of Bruar Limited, failed to pay £5543.8 to 57 workers
- Marks and Spencer, failed to pay £578,390.79 to 5,363 workers
- Macdonald Hotels (Management) Limited, failed to pay £16111.76 to 64 workers
- Argos Limited, failed to pay £480,093.58 to 10,399 workers
- Wren Kitchens Limited, failed to pay £1,675.73 to 16 workers
- Vue Cinemas (UK) Limited, failed to pay £1,029.13 to 8 workers
Responding to the publishing of the list, a spokesperson for Loganair said: “Loganair’s inclusion in this list relates exclusively to an optional salary sacrifice programme operated more than four years ago which enabled employees to voluntarily increase their pension contributions or to purchase electric vehicles.
“In providing its employees with options as to how to spend their own income, the choices made by a small number of staff led to their take-home pay falling below the NMW at the time.
“This issue was rectified by Loganair and closed by HMRC in March 2019. The Department for Business & Trade, which administers the National Minimum Wage scheme, fully accepts this issue was raised and resolved more than four years ago so it is with great disappointment to see our inclusion in today’s list so long after the event.”
A spokesperson for Macdonald Hotels said: “These unfortunate issues were caused by the introduction of a new payroll software system which we have now scrapped, and all relevant staff members were reimbursed by double the amounts involved.”
UK Government Minister for Scotland Malcolm Offord said: "The minimum wage is an important guarantee for workers and this Government is upholding that standard by calling out businesses - regardless of their size - who fail to pay up. We will not see people short-changed for their hard work.
"By naming the firms, we are underlining the fact that paying the national minimum wage is not optional - it's a legal requirement."
Bryan Sanderson chairman of the Low Pay Commission added: “The minimum wage acts as a guarantee to ensure all workers without exception receive a decent minimum standard of pay. Where employers break the law, they not only do a disservice to their staff but also undermine fair competition between businesses.
“Regular naming rounds should be a useful tool in raising awareness of underpayment and helping to protect minimum wage workers.”
