Monsoon has been named and shamed by the government for failing to pay more than 1,400 workers the minimum wage. The privately owned fashion retailer is one of 115 companies caught in the latest swoop by HM Revenue and Customs which oversees implementation of the pay regulations. The practise of naming firm who have not complied was introduced in October 2013 to raise pressure on companies to stick to the rules entitling workers to a minimum wage.
The latest list reveals that Monsoon short-changed 1,438 workers which equates to more than a quarter of its UK store staff – a total of £104,507.83. The company has been forced to reimburse staff and pay a fine.
The retailer previously required all staff to wear Monsoon clothes on duty, after buying them at a discount. The compulsory expense meant in effect many staff were taking home less than the minimum wage. Monsoon has since started paying a clothing allowance and raised wages.
The company said: “Monsoon Accessorize has recently been working with HMRC in a wide-ranging review of its payroll practices in relation to the national minimum wage. This review has revealed an historic, unintentional breach of the regulations in respect of its staff discount policies for Monsoon clothing. Monsoon is pleased that this issue has been identified and has already taken prompt action to remedy it.”