PizzaExpress and Hilton among companies named for underpaying minimum wage

PizzaExpress and Hilton are among the hospitality firms to have been named in a list of more than 500 companies the government says failed to pay some staff the minimum wage.

 

The Department for Business and Trade said nearly 60,000 workers had been paid over £7.4m after being left out of pocket.

 

The companies named have all have since paid back money owed to staff and faced fines of up to 200% of their underpayment.

 

However, many of the firms listed told The Caterer the underpayments were due to historic administrative or technical errors that were resolved years ago.

 

Casual dining chain PizzaExpress was ranked second in the list for failing to pay £706,701 to 8,470 workers, equivalent to around £83 per staff member.

 

A PizzaExpress spokesperson said: “Once we were made aware of this historic unintentional technicality, which occurred between 2012-2018, we swiftly identified who was impacted, apologised and rectified. There’s nothing more important to us than fairly and accurately paying our team members.”

 

Hilton UK Hotels Limited was named for failing to pay £18,924 to 20 workers, equivalent to £946 per person.

 

A Hilton spokesperson said: “As an above-minimum wage employer, making sure our team members are paid correctly is something we take very seriously. In 2019, we reported and rectified an administrative error concerning a very small number of team members.”

 

Contract caterer Elior UK failed to pay £12,198.61 to 496 workers, amounting to around £24.50 per staff member.

 

An Elior spokesperson said the caterer was “disappointed to have been included in the government’s list”.

 

“As an employer of choice, we take pride in offering a comprehensive range of company benefits and ensuring fair and competitive salaries,” they added.

 

“Upon becoming aware of this issue in 2019, we promptly collaborated with HMRC to investigate the matter. Our investigation revealed a technical error that affected a very small number of colleagues.

 

“We rectified the issue immediately and reimbursed all colleagues who were affected.”

 

Holiday park operator Parkdean Resorts also featured in the list for failing to pay £26,360.91 to 291 workers. This amounts to around £90.50 per team member on average.

 

A spokesperson for Parkdean Resorts said: “Like many other companies, an HMRC National Minimum Wage review between 2018-2021 found that we had unintentionally breached HMRC statutory wage regulations, including around uniform supply. As soon as we were made aware, we promptly identified the small number of individuals impacted by this unintended error and took swift remedial action to reimburse those individuals.”

 

What should employers be aware of around minimum wage payments?

 

The National Living Wage for people aged 21 and above rose to £12.21 per hour in April, while the minimum wage for those aged 18-20 increased to £10 per hour. Staff aged under 18 and apprentices must now be paid £7.55 per hour.

 

Julie Moore, a partner and National Minimum Wage expert at professional services group S&W, said the government’s rules were “uncompromising”, and even technical errors could result in companies facing fines and reputational damage.

 

“Employers who want to do the right thing can easily make technical errors. Even if they remedy it and repay workers, they can then find themselves named and shamed on a list years later,” she said. “It may not seem fair, but it’s a reality employers have to deal with.”

 

Moore warned staff staying late, taking extra time to change into or out of work clothes or protective equipment before or after shifts and failing to take breaks could push pay rates below the minimum.

 

Even salaried workers could end up being inadvertently paid under the minimum if they participate in salary sacrifice arrangements or work just a small number of hours over their contractual hours, Moore said.

 

She advised employers to ensure they were being transparent about how they calculated pay and to make it easy for employees to check internally if they were uncertain. 

 

“Most enforcement cases result from employee complaints. Once a complaint is received, all the employer’s National Minimum Wage compliance across the workforce will be reviewed. Even if the original complaint proves unfounded, the employer can find itself facing a review of its pay, uncovering failures from years ago.

 

“The government uses workers to police National Minimum Wage compliance, and it’s proved extremely effective.”