ao link
Twitter
Facebook
Linked In
Twitter
Facebook
Linked In

You are viewing 1 of your 1 free articles

Two housing associations ‘named and shamed’ for underpaying workers

Two housing associations have been named by the government on a list of organisations which have failed to pay their staff the minimum wage.

Linked InTwitterFacebookeCard
Picture: Getty
Picture: Getty
Sharelines

Two housing associations named by government for underpaying workers #ukhousing

Associations that plan to merge named by government for underpaying workers #ukhousing

North West associations underpaid 50 workers between them #ukhousing

Adactus Housing Group and Threshold Housing Project, which is a subsidiary of New Charter Group, are on the list of 179 employers that the government said have paid below minimum wage. The 179 employers were fined a total of £1.3m by the government as part of its Low Pay Commission.

Threshold Housing Project underpaid 41 workers a total of £26,034 between 2014 and 2017.

A spokesperson for Threshold said it had been reviewed by HMRC, which found “some issues in relation to the payment of travel time”.

The care service in which the affected employees worked has since closed, “as it is not economically viable”, the spokesperson added.


READ MORE

Homes England pledges to combat ‘unacceptable’ 18.4% gender pay gapHomes England pledges to combat ‘unacceptable’ 18.4% gender pay gap
How the housing crisis is affecting the sector’s own staffHow the housing crisis is affecting the sector’s own staff

Adactus Housing Group underpaid nine workers a total of £7,099 for two years between 2014 and 2016.

However, a spokesperson for Adactus said it has paid all employees at the “living wage” or above for several years, and “on an annualised salary basis” no members of staff were paid below the minimum wage.

The spokesperson said the shortfall came about because “for a short period” some employees “were deemed to have been paid below the required rate owing to a discrepancy between the date they joined the company and the date they signed apprentice training agreements”.

Adactus and New Charter announced plans to merge last year.

The National Living Wage is set to increase from £7.50 per hour to £7.83 per hour from April.

Andrew Griffiths, business minister, said: “There are no excuses for shortchanging workers. This is an absolute red line for this government, and employers who cross it will get caught – not only are they forced to pay back every penny, but they are also fined up to 200% of wages owed.

"Today’s naming round serves as a sharp reminder to employers to get their houses in order ahead of minimum wage rate rises on 1 April.”

A spokesperson for Threshold said: “We value our people and pay the real living wage rate rather than the National Living Wage. Our people also enjoy additional employment benefits. We were reviewed by HMRC and, as with the majority of other care providers who have been reviewed, they found some issues in relation to the payment of travel time.

“We worked closely with HMRC to rectify matters and to ensure the accuracy of future payments. Unfortunately the service has since had to close as it is no longer economically viable.”

 

 

A spokesperson for Adactus Housing Group said: “Adactus has paid all employees at the ‘living wage’ or above for several years. On an annualised salary basis, no members of staff were paid below the minimum wage. For a short period, some employees were deemed to have been paid below the required rate owing to a discrepancy between the date they joined the company and the date they signed apprentice training agreements. Any sums owed were paid promptly and systems tightened to ensure all elements of the minimum wage regulations are applied correctly. We are absolutely committed to doing right by our people, and this was evidenced in 2017 with our placement of ninth in the top 100 not-for-profit organisations.”

Linked InTwitterFacebookeCard
Add New Comment
You must be logged in to comment.