Window Firms Outed As Minimum Wage Cheats

Nail bars and fast-food outlets perhaps but we don’t expect window firms not to even pay minimum wage. Yet three of them have been caught doing just that.

Around 660 employers have been named in the 24^th round of naming & shaming for failing to pay staff the National Minimum Wage, with £4 million returned directly to workers.

It come as the government has just handed enforcement powers to new dedicated body which expects to bring even more disreputable companies to book for not paying what is legally owed.

It was discovered that over 27,000 workers had been denied the correct pay even though they are the county’s lowest earners.

Penalties totalling £7 million have been issued to the employers responsible on top of them having to make up the withheld wages.

See our article on payroll inefficiencies here

Which window firms were caught not paying?

Amongst the companies caught out were a host of serial offenders – care homes and providers that look after the old and vulnerable were the most prevalent group to take advantage of good people on dirt low wages. Serco and Group4 Security, two of the biggest companies in the UK that hold £billions of government contracts were there on the list again.

They were joined by Whiteline Manufacturing Limited of Eastbourne. The company describes itself as a leading fabricator of premium windows and doors from its state-of-the-art, 60,000sq.ft facility using the latest technology alongside valued employees. The firm prides itself on the work it does in its local community. It came 27^th out of the 660 companies on the list for the size of its ‘misdemeanour’.

In at 157

Carlisle Window Systems Limited or Carlisle, failed to pay a total of £5,242.23 to 23 workers. This could easily fall into the ‘administrative error’ side of an inefficient payroll. However, local installers may already be thinking about guilt by association and will expect the ‘mistake’ not to be repeated and question why a company that has a friendly team of experts ready to discuss your project and its market-leading windows, doors and glazing solutions is employing people on minimum wage in the first place. Carlisle Window Systems was 157^th on the list.

Now 285

City Glass Works Limited of Bradford, was 285 on the list having failed to pay just one worker £2,500.80 in total.

Name & shame to continue

The government has confirmed its commitment to publish naming lists more regularly so that bosses are swiftly held to account and make improvements as soon as possible.

Since first launching in 2011, more than £100 million in penalties have been issued to over 5,200 employers, leading to over £66 million being repaid to 650,000 workers.

Business Secretary Jonathan Reynolds said: “The best businesses know that looking after your workers isn’t just the right thing to do, it’s the smart thing to do, building the stronger, more successful businesses.

“Short-changing your staff isn’t a shortcut to success and we are determined to stamp it out.”

Follow the rules

Minister for the Future of Work Kate Dearden said: “Underpaying your staff is illegal and we will not let workers foot the bill for their boss failing to follow the rules.  We’re making sure workers get the hard-earned pay they deserve, and where employers fall short, they will be held to account.

“Every employer should check their payroll now and reach out to Acas if they need further support.”

Fair Work Agency

This was the first naming & shaming round since the Fair Work Agency was set up in April. This brand-new enforcement body was formed through the recently passed Employment Rights Act to bring workers’ rights enforcement under one roof for the first time.

Offering a single, streamlined place where employers will be able to get guidance on how to follow the rules, the Fair Work Agency will have more muscle to ensure that workers across the country get what they are owed.

This not only includes enforcing payment of the minimum wage but is soon set to tackle those who break the law by denying holiday and sick pay.

Chair of the Fair Work Agency Advisory Board Matthew Taylor said: “The Fair Work Agency is here to make it easier for employers to understand and meet their responsibilities, while taking firm action where workers are denied the pay they are legally owed.

“This naming round is an important reminder that paying the minimum wage is not optional, it is the law. Most employers want to do the right thing and we will support them to comply. Those who fall short should expect robust enforcement to protect workers and maintain a fair playing field for responsible businesses.

“We are urging all employers to check their payroll, review their processes and correct any mistakes now, so every worker receives the pay they are entitled to.”

Picture by John Garghan via Flickr: Since the last round of naming minimum wage cheats, another 27,000 workers have seen their wage packets come up short.

If workers suspect they are being underpaid, they can visit gov.uk/checkyourpay to find out more about what they can do. 

Workers and employers can visit the Acas website for free, impartial and confidential advice or complain they have been underpaid on the Pay And Work Rights Helpline. Workers and employers in Northern Ireland can contact the Labour Relations Agency. http://gov.uk/checkyourpay