Smith and Western blames error for underpaying staff

Smith and Western in Chichester <i>(Image: Ian Cunliffe)</i>
Smith and Western in Chichester (Image: Ian Cunliffe)
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A Sussex-founded restaurant chain has blamed a processing error after it was found to have paid members of staff below the minimum wage.

Smith & Western, which was founded in Horsham and operates restaurants across the South East, was named three times in a list of 18 employers in Sussex who collectively underpaid more than £114,000 to 406 workers.

Smith & Western's Chichester branch failed to pay £1,780.36 to 47 workers, the Crawley eatery owed £1,479.71 to 54 workers, and the Horsham restaurant underpaid £890.92 to 31 workers.

The restaurant's branches in Boxhill, Addlestone, and Tunbridge Wells were also found to have not paid more than £3,500 collectively to 113 workers. 

In a statement, the chain's directors blamed an error in processing and recording uniform deposits for the underpayments.

They said: "As soon as the issue was identified, we fully cooperated with HMRC and took immediate steps to rectify the matter.

"All affected employees were reimbursed in full for any shortfall with the appropriate payments made promptly."

The underpayments were uncovered through investigations by HMRC, which enforces minimum wage compliance on behalf of the newly established Fair Work Agency (FWA).

The FWA was created in April under the Employment Rights Act to unify workers' rights enforcement.

As part of this, the government has pledged to publish the names of offending employers more frequently to improve transparency and accountability.

A total of 78 employers across the South East were found to have collectively underpaid around 6,300 workers by £1.1 million.

Kate Dearden, Minister for the Future of Work, said: "Underpaying your staff is illegal, and we will not let workers foot the bill for their boss failing to follow the rules.

"We're making sure workers get the hard-earned pay they deserve, and where employers fall short, they will be held to account."

Smith and Western, which was founded in 1995, has seven locations across Sussex, Surrey, and Kent.

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