Argos was found to be in breach of the National Minimum Wage legislation during a “routine” inspection at the end of 2016. £64 per employee may not sound like a lot but multiply it by 37,000 and you are talking big money that the company is expected to pay to underpaid employees. Coupled with a fine of £1.5M for breaking the law. I am sure that the Human Resources team at Argos dreaded having to report that figure back to their bosses!
We always say that seemingly small problems can turn into bigger issues if they are not spotted or they are left unchecked and this is a perfect example of how not keeping on top of HR can turn into a costly mistake.
Sainsbury’s, who own Argos, admitted that workers were being under paid due to having to attend pre-shift briefings and also taking part in searches after their shift was finished. When their hours were averaged out, the pay that some employees were receiving per hour was below the minimum wage.
The Government is really starting to crack down on those not paying the minimum wage and names and shames businesses who are caught short. The current list of those who do not comply contains companies like Debenhams with thousands of employees as well as businesses who only employ 1 or 2 people – no one is exempt.
HR is not something that only big businesses need to think about. If you employ people then you need to think about it; it’s as simple as that! We can help give you a clear steer on how healthy your HR is and if it can be improved.
Want to talk about the minimum wage or is there another HR issue that’s on your mind? Call us on 0115 870 0150 or email firstname.lastname@example.org