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Legal Updates

Iceland in Minimum Wage Dispute

18 January 2019 #Employment

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.  

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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Ciara Duggan

Ciara Duggan

T: 020 7539 8052
M: 0778 665 5903


Employment team
+44 (0)118 958 5321