The iconic Love Hearts sweet brand's owner, Swizzels Matlow, has been compelled to pay £20,000 in restitution to hundreds of workers who were denied the minimum wage, following a government crackdown on underpayment. Based in Derbyshire, the confectionery firm, renowned for producing Drumsticks and Parma Violets alongside Love Hearts, received an undisclosed fine after being named on a list of 389 employers published by the Department for Business and Trade.
Widespread Underpayment and Enforcement
Swizzels Matlow failed to pay £19,961 to 437 employees, contributing to a total of £12.6 million in fines levied against employers nationwide for similar breaches. Business Secretary Peter Kyle emphasised the unfairness of such practices, stating to the BBC that the majority of businesses comply with wage laws, and it is unjust when others gain an advantage by withholding owed wages from their staff.
Company Response and Rectification
Nici Matlow, the human resources director at Swizzels Matlow, confirmed that all identified cases have been resolved. She explained that a routine investigation in 2022 revealed salaries inadvertently dropped below the minimum wage due to employees opting into salary sacrifice schemes, such as childcare vouchers, cycle-to-work programmes, and social or tool clubs. Additionally, time spent changing into personal protective equipment before shifts was not initially accounted for.
Corrective Measures Implemented
Matlow assured that these deductions are now factored into salaries, and the company is committed to paying the real living wage, a goal already achieved for 95% of the workforce. She highlighted ongoing efforts to ensure all employees receive fair compensation, underscoring the firm's dedication to rectifying past oversights and maintaining compliance with employment standards.
