H&M shamed by UK government for failing to pay National Minimum Wage

By

Cajsa Lykke Carlson

Published
Jan 15, 2015

UK Business Minister Jo Swinson today named and shamed 37 companies that failed to pay their workers the National Minimum Wage (£6.50 per hour.) The 37 companies owe workers a total of £177,000 in arrears and have been charged financial penalties totalling over £51,000.

One of the companies is H&M, which owes £2,604.87 to 540 workers. H&M, the second largest fashion retailer in the world, today posted its results for December, showing that its sales rose by 15% in the period. December was the ninth consecutive month that H&M, which is benefiting from a recovering U.S. economy, reached sales clearly or slightly above analysts' expectations in Reuters polls.

The company was investigated by the HM Revenue and Customs after workers called the confidential Pay and Work Rights helpline to complain.

"Paying less than the minimum wage is illegal, immoral and completely unacceptable. If employers break this law they need to know that we will take tough action by naming, shaming and fining them as well as helping workers recover the hundreds of thousands of pounds in pay owed to them," said Business Minister Jo Swinson.

"We are also looking at what more we can do to make sure workers are paid fairly in the first place. As well as being publicly named and shamed, employers that fail to pay their workers the National Minimum Wage face penalties of up to £20,000."

December was the ninth consecutive month that H&M, which is benefiting from a recovering U.S. economy, reached sales clearly or slightly above analysts' expectations in Reuters polls.