WH Smith PLC (LSE:SMWH) and Marks and Spencer Group PLC (LSE:MKS) have been fined alongside over 200 other firms for not paying staff minimum wage, the government announced on Wednesday.
Some £5mln was kept from 63,000 workers’ pockets by 202 companies between 2017 and 2019, including WH Smith, M&S, Argos and Lloyds Pharmacy.
As a result, the companies have been ordered to pay collective fines of £7mln on top of the owed salaries, which have already been paid, the business department added.
“Paying the legal minimum wage is non-negotiable and all businesses […] should know better than to short-change hard-working staff,” enterprise minister Kevin Hollinrake said.
WH Smith was the worst offender, failing to pay staff £1.08mln, while Lloyds and M&S fell short by £903,307 and £578,391 respectively.
J Sainsbury PLC (LSE:SBRY)-owned Argos did not pay £480,094 meanwhile, with over 40,000 workers being affected across the four businesses.
The companies were found to have either deducted pay from workers, not paid them for the correct hours worked or to have given the wrong rate for apprentices.
“Where employers break the law, they not only do a disservice to their staff but also undermine fair competition between businesses,” low pay commission chair Bryan Sanderson added.