The Sports Direct, a British sportswear retailer, came under the scanner in the British parliament over allegations of not paying the minimum wage to its employees in compliance with the wage laws. British Government laid out strict warning to the retailer that if wage laws were flouted, the Government will fine the company or even may disqualify the director, if deemed necessary.
Also Read – Brands come together to improve labour conditions
The issue came in the spotlight after the Guardian newspaper reported that lengthy and unpaid security checks of staff at its main warehouse in Shirebrook, Central England, meant that some workers effectively earned less than legal levels. Sports Direct over the alleged wage compliance issue replied that it was in compliance with minimum wage regulations and took its responsibilities extremely seriously.
This is not the first time when the brand, run by Mike Ashley, is alleged for flouting the labour laws. The group was also criticized earlier this year for the way it treated some staff and suppliers, with lawmakers saying it behaved like a “backstreet outfit”.
British lawmakers can put urgent questions to Government ministers if a matter of public importance has arisen, in this regard Nick Boles, a Government Minister within the business, innovation and skills department, was summoned by a lawmaker Chuka Umunna, an opposition party leader, to answer an urgent question on the wage position at the company.
Boles said, “I don’t care how famous an employer is, I don’t care how well connected they are, I don’t care frankly how much money they have made, they need to obey the law.” He also acknowledged that Sports Direct, as Britain’s biggest sportswear and sporting goods company, was a major employer with many staff content with their jobs.
