TWO employers in the Okehampton area have defended their record after being named in a Government report for underpaying workers.

Home Life Carers and the Manor House Hotel were among nearly 180 employers across the country named and shamed by the Department for Business, Energy and Industrial Strategy for paying staff less than the minimum wage.

The report released on Friday, March 9, said that Home Life Carers, which cares for people in their own homes across Mid Devon, failed to pay £3,675.32 to 31 workers. The Manor House Hotel near Okehampton, meanwhile, failed to pay £1,776.33 to 31 workers.

The report said that 9,200 workers had been underpaid by £1.1-million across the country.

As well as recovering backpay for 9,200 workers, the Government also fined the employers a total of £1.3-million in penalties for breaking national minimum wage laws. The most prolific offending sectors in this round were retailers, hospitality businesses and hairdressers.

The report came as minimum wage rates were due to rise on April 1 from £7.50 to £7.83 per hour. Apprentices under the age of 19 and those in the first year of their apprenticeship were set to benefit from a record 5.7% rise.

Business Minister Andrew Griffiths said: ‘The world of work is changing and we have set out our plans to give millions of workers enhanced rights to ensure everyone is paid and treated fairly in the workplace.

‘There are no excuses for short-changing 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.’

He said that the naming and shaming served as a sharp reminder to employers to get their house in order ahead of minimum wage rate rises on April 1.

Both of the employers in the Okehampton area defended their record in the light of the report.

John Griffiths, managing director of Home Life Carers, said: ‘This affected a small amount of carers in the Mid Devon area during a short period four years ago, and was a payroll issue which arose due to a miscalculation of enhanced rates paid for shifts worked out of normal hours. I’m pleased to say that the inspectors found that rates of pay since that period have well exceeded the national minimum wage and we remain one of the best paying agencies in the county.’

A spokesman for The Manor House Hotel said the hotel had only appeared on the list because a refundable deposit paid by live-in staff against damage to their accommodation was deemed by the HMRC inspectors to be a deduction from their wages.

‘No Manor House employee has ever been paid an hourly rate less than the minimum wage,’ he said. ‘The issue was purely a technicality relating to how a deposit for live-in accommodation was collected. Had we not charged a £20 deposit (damage fund) as well as the £25 rent we would not be on this list.

‘We were simply charging what we had been told on the previous audit. It appears that the PAYE and Minimum Wage departments at HMRC have conflicting views when it comes to employee rent deductions. Due to this conflicting information from the two HMRC departments, a technical error was made regarding minimum wage legislation.

‘The indiscretion amounted to £1,776 – it related to 31 live-in staff and did not relate to the gross minimum wage rate they had been paid. This amounted to 0.03% of a wage bill in excess of £5,000,000. Once identified this was immediately rectified.’