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Two East Lancashire companies failed to pay the minimum wage

Two East Lancashire companies failed to pay the minimum wage

In the latest round up of employers being named by the government for failing to pay their lowest paid staff the minimum wage, a further four companies across Lancashire have been outed, along with more than 200 across the country.

Firms have been ordered to repay workers and face penalties of nearly £7 million after breaches left 63,000 workers out of pocket.

The 202 employers from across Britain were found to have failed to pay their workers almost £5m in a clear breach of National Minimum Wage (NMW) law.

Lancashire Telegraph: Central Fitness Central Fitness (Image: Google)

Companies being named range from major high street brands to small businesses and sole traders.

The Government said this sends “clear message no employer is exempt from paying their workers the statutory minimum wage”.

Among those found to have underpaid staff were Central Fitness Limited in Accrington and Springvale Leather Limited in Rossendale.

Central Fitness Limited failed to pay one worker £1,909.17 and Springvale Leather Limited failed to pay £1,373.23 to one worker.

This is the full list of Lancashire employers being named and shamed for failing to pay the National Minimum Wage:

 

  • Blackpool Pleasure Beach Limited, Blackpool, failed to pay £2,866.95 to 12 workers.
  • Central Fitness Limited, Accrington, failed to pay £1,909.17 to one worker.
  • Springvale Leather Limited, Rossendale, failed to pay £1,373.23 to one worker.
  • Heritage Hotels Blackpool Limited (which went into liquidation on November 16, 2022, and traded as Melville Hotel), Blackpool, failed to pay £1,027.65 to two workers.
  • Mr Rassul Kadir, trading as Talbot Road Car Wash, Blackpool, failed to pay £864.80 to five workers.
  • Express Valeting Limited, Southport, failed to pay £4,338.3 to three workers.
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Minister for enterprise, markets and small business, Kevin Hollinrake, said: “Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff.

Lancashire Telegraph: Springvale LeatherSpringvale Leather (Image: Google)

“Most businesses do the right thing and look after their employees, but we’re sending a clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences.”

The businesses named in the full government list have since paid back what they owe to their staff and have also faced financial penalties.

The investigations by His Majesty’s Revenue and Customs concluded between 2017 and 2019.

The employers named today previously underpaid workers in the following ways:

  • 39 per cent of employers deducted pay from workers’ wages.
  • 39 per cent of employers failed to pay workers correctly for their working time.
  • 21 per cent of employers paid the incorrect apprenticeship rate.

Whilst not all minimum wage underpayments are intentional, there is no excuse for underpaying workers.

Bryan Sanderson, chair of the Low Pay Commission, said: “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.

“The government has been clear that anyone entitled to be paid the minimum wage should receive it, and that robust enforcement action will be taken against employers who do not pay their staff correctly.”

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  • June 25, 2023