A list detailing violations of the National Minimum Wage (NMW) regulation from 2013 to 2019 includes M&S, Chanel, Dune Group and Oasis and Warehouse. More than 200 businesses, including major chains and sole proprietors, failed to meet NMW regulations, according to investigations carried out between 2017 and 2019.
“Short-changing employees is unacceptable, and for large, high-street brands, the public expect better,” said Kevin Hollinrake, Minister for Enterprise, Markets and Small Business. “My message to all businesses is clear – pay your staff or face the consequences.”
Deductions from workers’ earnings and improper time payment, both of which occurred in 39 per cent of cases, were the most frequent underpayment scenarios. One in five (21 per cent) businesses have paid apprentices at the wrong rate.
A spokesperson for M&S, which is listed as having failed to pay £ 578,390.79 to 5,363 workers, said none of its staff were ever underpaid. “Like many other organisations, M&S is only named in the NMW list because of an unintentional technical issue from over four years ago,” the spokesperson said.
Chanel Limited, the UK division of Chanel, is accused of failing to pay 250 employees £ 70,413.59. A representative for the French luxury company stated that all of its employees are now paid over the National Living Wage and that its UK employees have always been paid an hourly rate above the NMW.
“What appear as payments under the National Minimum Wage for some staff prior to 2019 were due to the fact that they had authorised the company to make certain deductions from their salary at source,” the spokesperson said.
According to the list, Dune Group failed to pay £ 21,088.48 to 339 workers during the period. A spokesperson for Dune said the breach occurred in 2017-18, that it was not intentional, and related to payment for products purchased through the staff discount scheme or uniform allowance.
Oasis and Warehouse Limited, which went into administration in 2020, had previously failed to pay £ 10,963.70 to 996 workers, according to the Government.