Sports Direct to make £1m back payments to warehouse staff

Sports Direct has recently struck a deal with HMRC and trade union Unite to make back payments to thousands of its Shirebrook warehouse workers.

The agreement comes after founder Mike Ashley admitted in June that Sports Direct had broken the law by not paying the national minimum wage.

It will affect around 200 staff directly employed by the retailer and 3,000 agency workers.

The deal includes pay backdated to May 2012, estimated to be worth up to £1,000 for some workers and around £1m in total.

Back payments are expected to start from the end of August 2016.

The retailer and its employment agencies, The Best Connection and Transline, have also been hit with fines of up to £2m after it emerged they had underpaid some of the UK’s lowest-paid staff for four years.

Unite and HMRC have led long-running investigations of Sports Direct’s Shirebrook depot, and contributed to the Business, Innovation and Skills committee report on working conditions at the retailer.

What this means for employees

If your employer fails to pay the National Minimum Wage or National Living Wage, in the first instance you should raise a formal grievance. However if this does not resolve matters, you can make a complaint to HMRC who will investigate and can take action or you can issue a claim for unlawful deductions from wages in the Employment Tribunal to recoup any shortfall.

 

Source: The Guardian

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