A car dealership in Hampshire has been accused of paying its staff less than the minimum wage.
Saftdwin Limited, which runs a Volkswagen dealership in Old Basing, has already been found guilty of underpaying two employees £806 less than the legal requirement. Unions are now saying that other members of staff could be entitled to extra pay after they did not receive their correct holiday pay entitlements.
All businesses should protect the interests of their staff and legally must match the minimum wage requirements. To protect themselves, the owners of car garages and dealers also should have employer's liability cover as part of a combined motor trade insurance policy – this will offer financial cover in case a member of staff suffers an injury in the workplace which requires compensation.
A year ago, the London Road-based firm – which also has dealerships in Andover, Farnham and Camberley – said that it had paid back outstanding monies and enforced measures to prevent it happening again, the Basingstoke Gazette reported. However, the GMB Union says that Saftdwin along with 21 other companies across the south-east of England could owe their employees hundreds of pounds more.
The union is also urging a change in the laws which mean that it costs employees over £1,000 to bring a case forward regarding underpayment. GMB regional secretary Paul Maloney claimed the regions workers could be owed hundreds of pounds from the “unfair loophole”.
HMRC are investigating the car dealership, along with 24 others in the area.