Two Middleton businesses have responded after appearing on a government list of employers who failed to pay the minimum wage. The companies say the findings do not reflect the full circumstances and that any underpayments were corrected.
The list, published by the Department for Business and Trade, named 380 employers across the UK, including 23 in Greater Manchester and two based in Middleton.
It showed that Roly Poley’s Private Day Nursery Ltd failed to pay £2,395.71 to 39 workers, while Buildzone UK Limited failed to pay £558.64 to two workers.
A spokesperson for Roly Poley’s said the issue related to a misunderstanding around staff clothing. They said the matter was identified, explained to HM Revenue and Customs, and resolved.
They said “This was a misunderstanding which happened a couple of years ago which we explained to HMRC and sorted out straight away.
“We provide all staff with T shirts and fleeces and had suggested at interview they wear cheap black trousers and flat shoes which are comfortable and practical.
“They do start on minimum wage and we didn’t realise at the time that if they had to go out and buy trousers or shoes, it would be classed as a work expense and would put them below the minimum wage.
“We were shocked when we found out about this and tracked down the 39 people affected and paid them each the fee agreed with HMRC about £61.50.
“Since this happened, we have introduced new policies to make sure nothing like this can happen again.”
The spokesperson added that the business believes it is unfair to be included on the list, stating it acted quickly to correct the issue.
A spokesperson for Buildzone UK Limited said “This was a genuine admin error on our part and one that was immediately rectified and paid in full.”
Current minimum wage rates are £12.21 per hour for those aged 21 and over and £10 for those aged 18 to 20. Under 18s and apprentices receive £7.55. From next month, these rates will rise to £12.71, £10.85 and £8 respectively.
National figures show around £12.6 million in penalties have been issued to employers, in addition to repaid wages.
Business Secretary Peter Kyle said “The vast majority of businesses in this country do the right thing by paying their staff properly and playing by the rules. It’s not fair on them when others are able to get ahead by not paying the wages their workers are owed.”
Employment Rights Minister Kate Dearden said “Nobody should finish a week’s work and find they’ve been paid less than they’ve earned. I believe in a fair day’s pay for a fair day’s work.”
A new enforcement body, the Fair Work Agency, is due to launch on 7 April to bring workers’ rights enforcement under one organisation.
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