Jun 20, 2017 | By Carlene Thomas Bailey
Big data meets consumer insights. Experience WGSN.
Monsoon Accessorize has been named and shamed by the UK government for failing to pay some of its workers the national minimum wage.
The retailer – which prides itself on ethical behaviour – topped the list of 115 companies that collectively owed workers more than £389,000 in arrears after failing to comply with regulations.
The Department for Business, Innovation and Skills said Monsoon Accessorize had neglected to pay £104,507.83 to 1,438 workers, adding up to about £73 per worker. It has been forced to reimburse staff and pay a fine of £28,147.81.
It is understood Monsoon claimed to HMRC (Revenues & Customs) its workers had been underpaid by accident after some shop workers on the minimum wage had their salaries docked to cover the cost of Monsoon outfits to wear while on duty.
The outfits were discounted by 25%, but when the cost of the outfit was considered, it had led to the wages falling below the minimum wage.
The Times reported the staff affected have been now been compensated, and it has now put in place a clothing allowance to ensure the oversight does not happen again.
The government introduced the practice of naming firms in October 2013 to raise pressure on companies to adhere to rules entitling workers to a minimum of £6.70 an hour.
STAY UP TO DATE: You want the need-to-know news, right? Our journalists deliver a daily curation of the most important industry happenings. Sound good? Join WGSN.
Know what’s next. Become a WGSN member today to benefit from our daily trend intelligence, retail analytics, consumer insights and bespoke consultancy services.