Iceland have been accused by HMRC of underpaying their staff by £3.5 million a year for the last 6 years.
The dispute centres around Iceland’s voluntary savings scheme, where employees are able to set aside part of their wages to use later in the year, usually around Christmas.
However, HMRC argue that employees who pay into the scheme have seen their pay fall below the statutory minimum pay threshold. They class the scheme as a deduction for the company’s benefit as they hold the money in a separate Iceland bank account.
Iceland are also facing a minimum wage dispute over the requirement for staff to wear “sensible shoes”, as those who have bought their own may also have seen their pay fall below the threshold.
Iceland’s minimum wage disputes come after several other well-known companies such as Wagamama and Monsoon faced fines over dress requirements. Whilst it is possible to have voluntary schemes like Iceland’s and dress codes, employers should be mindful of the cost placed on the employees, particularly in low-wage positions.