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Monsoon - weathering the storm. But are you affected too?
Retailer Monsoon Accessorize has been “named and shamed” by the government for failing to pay more than a quarter of its UK store staff the national minimum wage (NMW).

It seems that the retailer neglected to pay 1,438 workers, a total of £104,507.83 and it has now been forced to reimburse staff and pay a fine of £28,147.81.

Monsoon requires all staff to wear Monsoon clothes on duty. Employees had been required to purchase these at a discounted rate out of their wages, but the compulsory expense meant that many staff were taking home less than the legally required minimum wage. This is one aspect that many employers overlook.

Businesses who require employees to purchase uniform, tools, equipment or other products (even if these are at a discount) need to be aware that the cost to staff will be considered to be deduction for NMW purposes. Examples of the benefits that cannot be counted towards an employee’s salary calculation when averaged over a pay reference period include vouchers, reimbursement for work-related expenses and any benefit in kind (other than accommodation).
Posted on 19 Nov 2016

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