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Iceland facing ‘£21m bill for breaching wage rules’

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Frozen food retailer Iceland is facing a £21m bill for breaching minimum wage rules, the Times has reported.

The paper says that staff voluntarily had sums deducted from their wages which was paid into a savings club. This meant their pay had fallen below the minimum wage and the alleged underpayment is about £3.5m a year for six years.

However, Iceland’s chief executive and founder, Sir Malcolm Walker, told media that the company would fight the dispute in court if necessary, calling the claim “just madness”.

Iceland had also issued guidance for staff to wear comfortable shoes. HMRC wants Iceland to refund staff for two shoe purchases a year going back six years.

HMRC comment is still awaited.




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