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Iceland to fight HMRC over wage dispute 'madness' | Iceland to fight HMRC over wage dispute 'madness' |
(35 minutes later) | |
The chief executive and founder of Iceland Foods has described a dispute with HMRC over the company's Christmas savings scheme as "just madness". | The chief executive and founder of Iceland Foods has described a dispute with HMRC over the company's Christmas savings scheme as "just madness". |
Under the scheme, staff can voluntarily set aside money from their weekly wages and claim it back later. | Under the scheme, staff can voluntarily set aside money from their weekly wages and claim it back later. |
However, HMRC has told the company the payment means staff are technically falling below the minimum wage. | However, HMRC has told the company the payment means staff are technically falling below the minimum wage. |
Iceland founder Malcolm Walker intends to fight the HMRC claim, which was first reported in the Times. | Iceland founder Malcolm Walker intends to fight the HMRC claim, which was first reported in the Times. |
If it loses, the retailer could face a bill of £21m. | |
HMRC said it did not comment on individual cases. | HMRC said it did not comment on individual cases. |
According to Iceland, it has also been told by HMRC that its policy on footwear breaches minimum wage rules as well. | |
HMRC said that staff should be compensated for shoes bought for work, as Iceland had given staff guidance that "sensible shoes" should be worn. | |
The guideline applies only to staff who work in stores, since warehouse staff are provided with safety shoes. |