The Guardian recently reported that some staff at Le Gavroche in Mayfair say they have routinely worked 14-hour shifts for the equivalent of £5.50 an hour, well below the national minimum of £7.20. They claim they would work up to 68 hours a week, but earn only about £375 before tax. This means that they were being paid less than for working at MacDonald’s. If they were working for 68 hours per week, they should be paid at least £490.
A statement from Le Gavroche said: “All employees receive monthly wages which are fixed or static, whether they are front of house, or in the kitchen, and they are adjusted as a stepped increase over time to reflect length of service, level of responsibility and ability”.
Peter Stanway, our BackupHR™ legal expert comments:
This explanation does make sense, but it does not justify a lack of control to avoid this happening, with all the attendant bad publicity attached to owner TV chef Michel Roux, who apologised saying “I am embarrassed and I am sorry, but in no way was it done intentionally.”
It comes at a time when the Government, via the HM Revenue and Customs (HMRC), launched an awareness campaign based on bad excuses. It is encouraging people to check their wages and warning employers of fines.
An employer failed to pay the minimum wage to a worker because “she only makes the teas” – one of a string of bizarre excuses by employers. Another argued for not paying the legal minimum, saying that a member of staff “wasn’t a good worker”, while one said employees should “prove their worth”.
Among the cases investigated by HMRC was a boss who thought it was acceptable to pay foreign staff (in the UK) below the statutory rate.
Other excuses included:
- I’ve got an agreement with my workers that I won’t pay them the National Minimum Wage; they understand and even signed a contract to this effect.
- My workers like to think of themselves as being self-employed and the National Minimum Wage doesn’t apply to people who work for themselves.
- My workers are often just on standby when there are no customers in the shop; I only pay them for when they’re actually serving someone.
- The National Minimum Wage doesn’t apply to my business.
Business Minister Margot James said: “There are no excuses for underpaying staff what they are legally entitled to“.
All workers must be paid at least £7.20 an hour if they are aged 25 and over, in order to comply with the National Living Wage, this will rise to £7.50 in April. Businesses face a maximum fine of £20,000 per worker, for not paying the National Living or Minimum Wage. Failure to pay statutory minimums could also result in a company Director being banned for up to 15 years.
The National Minimum Wage means that:
- Workers aged 21 to 24 should receive a legal minimum of £6.95 an hour.
- 18 to 20 year olds should get at least £5.55 an hour.
- Pay should be at least £4 an hour for the under-18s.
- Apprentices should receive a minimum of £3.40 an hour.
- You need to monitor working hours so that people on or just above the National Minimum or Living Wage rates do not fall below them, when they do extra hours.
The guidance provided in this article is just that – guidance. Before taking any action make sure that you know what you are doing, or call us for specific advice.
