News

Travel firms among those named for failing to pay minimum wage

Loganair, Macdonald Hotels and Blackpool Pleasure Beach are among more than 200 employers named by the government for failing to pay the minimum wage.

Companies highlighted by the Department for Business & Trade range from major high street brands to small businesses and sole traders.

They were found to have failed to pay workers almost £5 million in a breach of National Minimum Wage (NMW) law, leaving around 63,000 workers out of pocket.

The Scottish regional airline was found to have failed to pay £24,367 to 43 workers – but it argued that the issue was resolved more than four years ago.

Macdonald Hotels failed to pay £16,111.76 to 64 workers and Blackpool Pleasure Beach failed to pay £2,866.95 to 12 workers.

The 202 businesses named in today’s list have since paid back what they owe to their staff and have also faced financial penalties of almost £7 million after breaches left 63,000 staff out of pocket, according to the government.

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

Kevin Hollinrake, minister for enterprise, markets and small business, 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.

“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.”

A Loganair spokesperson said: “Loganair’s inclusion in this list relates exclusively to an optional salary sacrifice programme operated more than four years ago which enabled employees to voluntarily increase their pension contributions or to purchase electric vehicles.

“In providing its employees with options as to how to spend their own income, the choices made by a small number of staff led to their take-home pay falling below the NMW at the time.

“This issue was rectified by Loganair and closed by HMRC in March 2019. The Department for Business & Trade, which administers the National Minimum Wage scheme, fully accepts this issue was raised and resolved more than four years ago so it is with great disappointment to see our inclusion in today’s list so long after the event.”

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.