Monsoon Accessorize leads latest government’s minimum wage shame list

British highstreet retailer Monsoon Accessorize is on the top of the government’s latest name and shame list of companies which failed to pay their employees the national minimum wage. (NMW) The fashion retailer is said to owe 104,508 thousand pounds to 1,438 employees - over a quarter of its UK store employees - putting it first on the most recent list of 115 companies.

According to Monsoon Accessorize, the dip in the wages occurred between 2011 and 2013 when they introduced a new policy that included up to 50 percent staff discount on apparel to wear to work. The discount was then mistakenly taken off the wages, which caused them to drop below the legal line.

The fashion retailer revealed that the issue was first brought up when HM Revenue & Customs reviewed its payroll system, which led to them taking prompt action in the form of issuing repayments to the effected staff and increasing basic wages to ensure the issue would not happen again

“Monsoon Accessorize has recently been working with HMRC in a wide-ranging review of its payroll practices in relation to the national minimum wage,” said the fashion retailer in a statement on Friday. “This review has revealed an historic, unintentional breach of the regulations in respect of its staff discount policies for Monsoon clothing. Monsoon is pleased that this issue has been identified and has already taken prompt action to remedy it.”

The highstreet retailer is the second big fashion chain to be listed in the government’s name and shaming scheme this year. In January, H&M was said to have failed to pay 540 workers a total of 2,605 pounds. “Employers that fail to pay the minimum wage hurt the living standards of the lowest paid and their families,” commented business minister Nick Boles.

"Next April we will introduce a new National Living Wage, which will mean a 900 pounds-a-year pay rise for someone working full-time on the minimum wage, and we will enforce this equally robustly."