Hospitality employers named and shamed for failing to pay minimum wage

By Carina Perkins contact

- Last updated on GMT

The government is cracking down on compliance with minimum wage legislation
The government is cracking down on compliance with minimum wage legislation

Related tags: Minimum wage, Wage

Hospitality businesses were among 70 employers ‘named and shamed’ by the government today (24 Feb) for failing to pay their workers national minimum wage.

The 70 employers named owe workers over £157,000 in arrears and have been charged penalties totalling over £70,000.

The offending hospitality businesses include pizza restaurants, hotels, cafes, a fish & chip shop and a Chinese takeaway. The biggest offender was Fylde Coast Pizza Ltd, which was trading as Papa Johns, Blackpool and neglected to pay £3,949.62 to 14 workers

The government launched its minimum wage crackdown in October 2013, and the new list brings the total number of employers named and shamed under the new regime to 162.

Business minister Jo Swinson said: “Paying less than the minimum wage is illegal, immoral and completely unacceptable. Naming and shaming gives a clear warning to employers who ignore the rules, that they will face reputational consequences as well as financial penalties of up to £20,000 if they don’t pay the minimum wage.”

Minimum wage crackdown

There are no signs that the government will ease off in punishing employers who fail to pay fairly, with plans to increase the HMRC’s £9.2m enforcement budget by a further £3m to help fund more than 70 extra compliance officers.

Additionally, the pending Small Business, Enterprise and Employment Bill would mean that financial penalties could be applied to each underpaid worker rather than per employer.

Minimum wage rates increased in October 2014 to £6.50 per hour for adults, £5.13 per hour for 18 to 20 year-olds, £3.79 per hour for 16-17 year olds and £2.73 for apprentices.

Employers who are unsure of national minimum wage rules, and employees who would like advice or to register a complaint, can get free advice via the Pay and Work Rights Helpline on 0800 917 2368 or by visiting GOV.UK​.

The hospitality businesses named on 24 Feb:

  • Fylde Coast Pizza Ltd trading as Papa Johns, Blackpool, neglected to pay £3,949.62 to 14 workers
  • Mr L Tolman & Mr S Blanchard trading as Mardi Gras Hotel, Blackpool, neglected to pay £3,206.76 to 3 workers
  • Mr S Partridge & Ms M Shead trading as Cobblers Fine Sandwiches & Pastries, Wakefield, neglected to pay £1,003.83 to a worker
  • Leisure Emporium Ltd trading as Brown’s Cafe Bar & Bistro, Nottingham, neglected to pay £643.86 to a worker
  • Mrs S Walker trading as Alleyways Fish & Chips, Scarborough, neglected to pay £601.59 to a worker
  • Gary & Toni Valentine trading as The Harbour Inn, Seaton, neglected to pay £584.42 to a worker
  • Shreeji Barnsley Ltd trading as Coffee Delight, Buxton, neglected to pay £555.70 to a worker
  • Inn2inns Ltd, Middlesbrough, neglected to pay £323.10 to 2 workers
  • Lychgate Coffee Ltd, Wolverhampton, neglected to pay £124.39 to a worker
  • Lin Chinese Takeaway Ltd, Stoke-on-Trent, neglected to pay £103.00 to a worker
  • Mr Assad Madani trading as Donapapa Pizza, Durham, neglected to pay £101.64 a worker

Are you looking for a job in hospitality? Or perhaps for staff? Then take a look at our job site, BigHospitalityJobs.

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