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Tue 24th Mar 2015 - G1 Group named as UK top offender for not paying minimum wage
G1 Group named as UK top offender for not paying minimum wage: Scotland’s largest managed pub and restaurant operator G1 Group has been named top offender in the UK for not paying the minimum wage out of 48 companies across the UK highlighted by Business Minister Jo Swinson. A HMRC investigation found G1, led by Stefan King, neglected to pay national minimum wage totalling £45,124 to 2,895 employees. G1 Group said some employees had fallen bellow the national minimum wage as they had been asked to make a “small contribution” towards the cost of workwear or training. A company spokesman told The Daily Record: “We are extremely focused on the protection, training and development of our staff, from junior roles on National Minimum Wage all the way through to senior management levels. A fundamental part of this process is our annual pay scale reviews - ensuring our employees are always paid in accordance with minimum wage guidelines. On some occasions, we have asked our employees to make a small contribution towards the cost of workwear or training to enhance their career performance. We understand that in effect, this has previously brought some employees marginally below the minimum wage in some pay periods. For this reason, we no longer apply these deductions, and any associated repayments have been made in light of this issue being highlighted.” Swinson said: “There’s no excuse for companies that don’t pay staff the wages they’re entitled to – whether by wilfully breaking the law, or making irresponsible mistakes. The Government is protecting workers by cracking down on employers who ignore minimum wage rules. In addition to naming and shaming, we’ve increased the penalty fines and boosted the resources available to investigate non-compliance.” A statement from the Department of Business, Innovation and Skills added: “Employers who pay workers less than the minimum wage not only have to pay back arrears of wages at current minimum wage rates but also face financial penalties of up to £20,000. In the most serious cases employers can be prosecuted.” G1 Group reported pre-tax profit of £11,208,983 in the year to 31 March 2014, up from £10,874,798 the year before. Turnover grew to £67,352,319 from £66,317,891 the year before. Ebitda was up by £900,000 to £17,200,000.

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