Monsoon has been named and shamed by the government for failing to pay more than 1,400 workers the minimum wage. The privately owned fashion retailer is one of 115 companies caught in the latest swoop by HM Revenue and Customs (HMRC), which oversees implementation of the pay regulations.

The government introduced the practice of naming firms in October 2013 to raise pressure on companies to stick to the rules entitling workers to a minimum of £6.70 an hour. The latest list reveals that Monsoon short-changed 1,438 workers – more than a quarter of its UK store staff – a total of £104,507.83. The company has been forced to reimburse staff and pay a fine of £28,147.81.

The retailer previously required all staff to wear Monsoon clothes on duty, after buying them at a discount. The compulsory expense meant in effect many staff were taking home less than the minimum wage. Monsoon has since started paying a clothing allowance and raised wages.

The company said: “Monsoon Accessorize has recently been working with HMRC in a wide-ranging review of its payroll practices in relation to the national minimum wage. 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 company is listed by the government alongside a number of hair salons, car repair shops and a riding centre for disabled people. Workers at the 115 companies were owed more than £389,000 in arrears.

Monsoon is the second major fashion chain to be targeted by the government this year. In January, H&M was revealed to have underpaid 540 workers a total of £2,605. Employers that pay workers less than the minimum wage not only have to pay back arrears at current rates, but also face financial penalties of up to £20,000.

The business minister, Nick Boles, said: “Employers that fail to pay the minimum wage hurt the living standards of the lowest-paid and their families.”



Retailers are under pressure to increase remuneration for their lowest-paid workers before a rise in the national minimum wage for over-25s – the so-called “national living wage” – due to be implemented in April.

Last month, Morrisons increased pay for 90,000 shop floor staff to £8.20 an hour – £1 an hour more than the new national rate. That came after German discounter Lidl said it would pay £8.20 an hour and Sainsbury’s gave staff a 4% pay rise to £7.36 an hour, although unlike the other retailers, that includes paid breaks.

After years of falling real wages since the financial crisis, campaigners have piled pressure on employers this year by highlighting that the government was topping up low pay through the benefit system. They targeted the annual shareholder meetings of major retailers, including Morrisons, Next, Sainsbury’s and Tesco, with protests to demand the adoption of the full living wage, which is set by independent analysts and is £7.85 an hour, or £9.15 in London.