Walsall Council named and shamed for failing to pay its workers minimum wage
Walsall Council has been exposed for failing to pay its workers the national minimum wage.
An investigation by the Department for Business and Trade (DBT) found the authority illegally underpaid 36 members of staff.
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Between them, they missed out on a total of £21,890.67 in wages.
National Minimum wage is currently at £12.21 an hour for those aged 21 and over. Next month the figure will rise by 50p to £12.71.
Walsall Council said the full total of unpaid wages were issued to affected employees at the next available payroll run.
A spokesperson for the authority said: “Walsall Council accepted all of the determinations made following the HMRC investigation.
“All outstanding payments were made to affected employees at the earliest possible opportunity through the next available payroll run with a total cost of £21,890.67.
“HMRC also noted the council’s willingness to engage throughout the process, as well as the high level of co-operation shown during the investigation.”
Walsall Council, which employs around 3,000 people, was number 33 in a list of 389 employers which were named and shamed by the DBT. Walsall Council was the only local authority which made the list.
The government has ordered a total of £12.6million in penalties to be paid as well as the missed wages.
Other nearby offenders include Busy Bees Nurseries Ltd in Burntwood, which failed to pay £485,374.05 to 9,056 workers, ranking number four on the list.
At number 51, Jooced Custom Sound & Vision Ltd in Wolverhampton failed to pay £13,986.67 to five workers.
Manor Court Healthcare Ltd failed to pay £5,527.70 to 32 workers, coming in at number 102.
Also Wm. Wheat & Son Limited in Walsall underpaid 31 workers by £2,539.22, ranking at 169.
Business Secretary Peter Kyle said: “A good employer doesn’t build their business on the back of unpaid wages, and I look forward to working with the new Fair Work Agency to ensure its powers are used to crack down on those who think the rules don’t apply to them.”
Employment Rights Minister Kate Dearden said: “Nobody should finish a week’s work and find they’ve been paid less than they’ve earned. I believe in a fair day’s pay for a fair day’s work. That’s why we’re cracking down on employers who underpay. We’re making sure workers get the hard earned pay they deserve. I encourage every employer to check their payroll to ensure they don’t get caught out.”
