The Pharmacists’ Defence Association (PDA) yesterday (June 5) exposed the four pharmacies that have been “named and shamed” by the government for “failing to pay [staff] the national living and national minimum wage”.
Two of the pharmacies – Rowlands and Day Lewis – placed in the top 20 for the largest amount underpaid to employees, it said, with the others – J M McGill and Bastwell Pharmacy – ranking in the top 105.
Rowlands told C+D that some colleagues were “unintentionally underpaid” but that it “promptly” rectified this and has taken “proactive steps to ensure compliance”. Read its statement in full below.
Read more: ‘Just one pharmacy business’ owes locums £200k unpaid fees
It comes after the Department for Business and Trade last week (May 29) revealed the 518 employers and businesses who “left workers over £7.4 million out of pocket” due to insufficient pay between 2015 and 2022.
But it said that all companies have “since paid back what they owe to their staff and faced financial penalties of up to 200% of their underpayment”.
Trainees at risk
“The fourth largest underpayment was by pharmacy multiple L Rowland & Company (Retail) Limited, which underpaid a total of £307,342.87 to 2,293 workers,” the PDA said.
It added that “16th in the list was Day Lewis PLC, which underpaid £82,819.47 to 604 workers”.
J M McGill Ltd was 27th in the list, underpaying “£38,178.62 to 364 workers”, while R.H. Wilson - which trades as Bastwell Pharmacy - was 103rd, failing to pay “£8,925.53 to 11 workers”, it said.
Read more: Foundation training schemes risk ‘breaching minimum wage law’
The PDA explained that “the breaches highlighted by the government are unlikely to have involved pharmacists, as their rates of pay should be significantly above minimum wage levels”.
But it added that foundation trainees have previously been at risk of being paid “less than the minimum wage if they work beyond their contracted hours”.
“This remains an active concern and any business employing a foundation trainee should check the actual hourly rate the individual is receiving,” it said.
“No excuse”
The union called for “consequences for decision makers and shareholders when the businesses that they control break employment law, or other laws”.
And it stressed that breaches of minimum wage are “another example of poor business behaviour in the pharmacy sector”.
Read more: Lloydspharmacy ‘named and shamed’ in government minimum wage probe
Employment rights minister Justin Madders said that “there is no excuse for employers to undercut their workers and [the government] will continue to name companies who break the law and don’t pay their employees what they are owed”.
And chair of the Low Pay Commission Baroness Philippa Stroud said that underpayment “disadvantages the majority of employers who do abide by the rules”, adding that “these naming rounds play an important part in ensuring that all workers receive their full wages”.
“Unintentionally underpaid”
A Rowlands spokesperson today (June 6) told C+D that it has taken “proactive steps to ensure compliance with the national minimum Wage (NMW) regulations” since the review, which it said took place five years ago.
It stressed that the review focussed on employees “whose pay was close to the NMW” and that the government “identified instances where, despite [its] best efforts, some colleagues were unintentionally underpaid”.
“We worked collaboratively with His Majesty’s Revenue and Customs (HMRC) on these cases to promptly address and rectify - at the time, we believed our practices were compliant with the regulations,” Rowlands said.
Read more: Minimum wage to rise 6.7% as National Insurance hike confirmed
“As a result of this review, we have developed a comprehensive strategy and a robust compliance plan to ensure we meet NMW requirements and continue to uphold our commitment to fair and lawful pay practices,” it added.
C+D also approached Day Lewis, J M McGill and Bastwell Pharmacy for comment.
It comes after the PDA announced this week that it is supporting a “small group of members” who are “collectively owed more than £200,000” for locum shifts at just one pharmacy business.
