Equestrian businesses among those investigated for underpaying staff
Library image.
(Image credit: Lucy Merrell)
The investigation of equestrian businesses among those that had fallen foul of national minimum wage (NMW) legislation is an important reminder of the law.
Five equestrian employers were included in a list published by the Government, of more than 500 businesses that had been found to have breached the law. The businesses have since paid back what they owed to their staff, the Government confirmed, and have faced financial penalties of up to 200% of their underpayments. The HMRC investigations concluded between 2015 and 2023.
Kevin Hollinrake, the minister for enterprise, markets and small business, said employees deserve to “get paid properly for the hard work they put in”.
“While the majority of businesses already do the right thing and pay their staff what they are owed, today’s announcement sends a message to the minority who aren’t – that there are repercussions to undercutting hard work from their staff,” he said.
The Government acknowledged that not all underpayment of the minimum wage is intentional, with which equestrian business advisor Claire King agrees.
“I have worked with a number of riders over the years that have had NMW investigations and sadly, while the most obvious area everyone thinks of is not paying workers for the hours they have worked, there are other areas that you can get tripped up on that you may not realise mean you are not paying the NMW,” she told H&H. “Riders and businesses should be aware of the pitfalls.”
These can include deducting more than the legal maximum offset for accommodation, or deducting from pay for livery or training, she explained, adding that employers should also check staff members’ dates of birth to ensure they are paying the correct amount for their age range.
“The focus will be on compliance, and it is noted that HMRC has been clear that the equestrian sector is of particular interest. It is the employer’s strict responsibility and liability to be compliant to the NMW and I urge them to do so to protect their business and livelihood.”
Patricia Rice, independent commissioner of the Low Pay Commission, said: “Since its introduction nearly 25 years ago, the NMW has played a vital role in protecting the earnings of the lowest-paid workers in the UK. At a time when the cost of living is rising, it is more important than ever that these workers receive the pay to which they are entitled.
“NMW underpayment not only cheats workers of their rightful due, it leaves compliant firms undercut by those who do not abide by the law. By naming the firms responsible for significant underpayment, we raise awareness of the nature and the scale of underpayment and encourage all employers to ensure that they fully comply with the law.”
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