Harrods Warehouse Staff Shortchanged in Major Payroll Error
Workers at Harrods' warehouses have been underpaid by thousands of pounds after their temporary recruitment agency failed to provide correct holiday pay. The exclusive Knightsbridge retailer, owned by Qatar's sovereign wealth fund, confirmed the error occurred through The Best Connection, the agency responsible for employing and supplying warehouse staff.
The Scale of the Underpayment
The payroll mistake potentially represents a six-figure debt owed to hundreds of lower-paid employees. Although The Best Connection disputes this estimate, sources familiar with the contract suggested up to 1,000 Harrods workers might have been affected, with unpaid funds possibly totalling "hundreds of thousands of pounds".
The agency claimed the underpayment resulted from "human error" rather than systematic issues, stating they had proactively contacted affected employees. "A large portion of those contacted have already received payments and we are thankful for their understanding in this matter," a spokesperson said. However, they declined to specify exactly how many workers were impacted or the total amount owed.
Calculating the Holiday Pay Shortfall
Under UK law, workers are entitled to 5.6 weeks of paid leave annually, requiring employers to supplement earnings by approximately 12.07% to cover holiday periods. Records examined by The Guardian indicate The Best Connection was adding holiday pay at only about 10.7% of average earnings for Harrods staff, potentially creating significant underpayments over time.
Joanne Young, chief executive of the Association of Labour Providers, emphasised: "Workers must be paid all the holiday pay they are legally entitled to. While the calculations can be complex, underpayment, whether accidental or deliberate, is unacceptable and should be swiftly remedied."
Broader Implications and Historical Context
This incident marks the latest in a series of challenges for Harrods over the past year. In March, the department store established a compensation scheme for survivors of alleged sexual abuse by former owner Mohamed Al Fayed. Then in May, the retailer warned customers about potential data theft following a significant IT security breach.
The Best Connection's involvement raises additional concerns given their history with the illegal pay regime at Sports Direct exposed by The Guardian in 2015. On that occasion, the agency was among those required to make approximately £1 million in back pay to workers who hadn't received the national minimum wage.
The staffing agency boasts access to over 300,000 temporary workers across the UK and lists major clients including DHL, Waitrose, Next, and the NHS on its website. Several of these organisations have confirmed they've experienced no similar payment issues with The Best Connection workers.
A Harrods spokesperson stated: "We are aware of a payslip error impacting some former employees of The Best Connection. The error relates to workers who accrued but did not use holiday days while on assignment with Harrods and was the result of a clerical error by The Best Connection that has since been corrected."
