EasyJet admits failing to pay minimum wage to nearly 4,000 staff
James ChappleEasyJet has said "a genuine error" resulted in it failing to pay nearly 4,000 members of current and former staff the minimum wage over a five-year period, amounting to a shortfall of nearly £340,000.
The airline was on Tuesday (20 February) named among more than 500 business found by government to have not paid the National Minimum Wage following an investigation covering the period from 2015 to 2023.
Staffline Recruitment Limited topped the list, underpaying some 36,767 workers by more than £5.1 million, with easyJet sitting eighth in the ranking.
Other travel and tourism firms on the list include Alton Towers, Thorpe Park and Legoland parent Merlin Entertainments Limited, dnata Catering UK Limited and Center Parcs.
EasyJet said a 2018 review by HMRC established that during the first month of initial new entrant training, some UK cabin crew were paid below the National Minimum Wage. No like findings were uncovered relating to any other periods of their employment after that initial month of training.
The airline said it took "immediate action" to address the issue, including by making a back payment to affected members of cabin crew who undertook their training between 2014 and 2019.
In total, easyJet reimbursed 3,898 current and former employees a total of £338,876.46, amounting to an average underpayment of £86.94pp.
"This was a genuine error which we immediately rectified and issued back payments to all affected crew," an easyJet spokesperson told TTG.
"While all crew in this period (2014-2019) were paid in line with the National Minimum Wage for their total annual salary, this review in 2018 identified a specific issue affecting our new entrant cabin crew only during their initial three week training course, as some payments only apply once crew are flying.
"EasyJet is committed to treating its people fairly, paying competitively and complying with market practices.”
EasyJet added it had since undertaken a broader review of UK cabin crew pay, and updated how it pays new entrants embarking on their training, while working too with its recognised union Unite.
Some 524 businesses were named by the government for failing to pay minimum wage, who have been ordered to pay back nearly £16 million in total – plus additional financial penalties.
The Department for Business and Trade said that while it acknowledged not all minimum wage underpayments are intentional, it would nonetheless take "robust" enforcement action where necessary to ensure people are paid the National Minimum Wage.
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Company number 08723341.
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