WH Smith, M&S and Argos among retailers fined millions for failing to pay staff minimum wage

WH Smith, Marks & Spencer and Argos are among a number of retailers to have been “named and shamed” by the government after £5 million was found to be owed to around 63,000 workers.

Investigations by Her Majesty’s Revenue and Customs (HMRC) dating back as far as 2017 found more than 200 businesses have broken the minimum wage law.

The employers have been made to pay back what they owed and were fined around £7 million.

WH Smith was found to be the worst offender, failing to pay around £1 million to 17,607 workers, HMRC found.

A spokesman for WH Smith said it was a “genuine error” and the retailer had “misinterpreted how the statutory wage regulations were applied to our uniform policy for staff working in our stores.”

The spokesman added that “it was rectified immediately with all colleagues reimbursed in 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.”

He added that HMRC is sending a “clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences.”

The government said Lloyds Pharmacy was also another employer at fault, failing to pay £903,307 to 7,9116 workers.

Marks & Spencer failed to pay £578,390 to 5,363 workers, while Sainsbury’s-owned retailer Argos was named for failing to pay £480,093 to over 10,000 workers.

An M&S spokesman said the retailer is “only named in the list because of an unintentional technical issue from over four years ago.”

The spokesman added: “This happened simply because temporary colleagues were not paid within the strict time periods specified in the national minimum wage regulations and was remedied as soon as we became aware of the issue.

“Our minimum hourly pay has never been below the national minimum wage, it is currently above it and no colleagues were ever underpaid because of this.”

A Sainsbury’s spokeswoman said: “Back in 2018, a payroll error was identified which affected some Argos store colleagues and drivers and dated back to 2012, before Sainsbury’s acquisition of Argos. We launched an immediate investigation, working alongside HMRC, and put this right at the time.

“Since then we have completed the integration of Argos onto Sainsbury’s systems which will prevent this from happening again.”

The news comes after millions of the lowest paid workers across the UK received a pay increase as the National Minimum Wage and National Living Wage was lifted from 1 April. ise comes into effect.

The rate rises included a 9.7% increase in the National Living Wage, from £9.50 per hour to £10.42.

NationalWorld has contacted Lloyds Pharmacy for comment.