Sports Direct Pays Below Minimum Wage

Temporary workers at Sports Direct, the booming retail chain controlled by billionaire Mike Ashley, are receiving an effective hourly rate below the minimum wage, an investigation has revealed.

Unpaid Security Checks Add Up

Warehouse staff at the Shirebrook, Derbyshire facility are kept onsite at the end of each shift for a compulsory security search, which typically takes 15 minutes. That time is unpaid, adding up to an estimated extra hour and 15 minutes each week off the clock.

Despite severe deductions for clocking in just one minute late (a flat 15-minute pay penalty), workers receive no extra pay for finishing shifts late, even when finishing critical tasks.

Consequences for the Workforce

These practices drive many staff to an effective hourly rate of around £6.50—well below the statutory £6.70—saving the FTSE 100 firm millions at the expense of some of the UK’s lowest-paid workers.

• Harangued via tannoy if targets aren’t met.
• Risk of dismissal under a “six strikes and you’re out” policy for offences ranging from minor errors to “excessive chatting.”
• Daily body searches down to underwear and rolled-up trouser legs, purportedly to prevent theft.

Legal and Union Perspectives

Employment law specialists argue that since workers are not free to leave until the security check is complete, that waiting time should be classed as working time under the National Minimum Wage Regulations and the Working Time Directive.

Zoe Lagadec, solicitor at Mulberry’s Employment Law Solicitors, notes: “Given that employees cannot shorten or use the security-check time for their own interests, it should be paid in accordance with national minimum wage provisions.”

Unite regional officer Luke Primarolo adds: “The culture of fear at Sports Direct’s Shirebrook depot is more akin to a workhouse than a FTSE 100 company. HMRC needs to investigate these apparent breaches urgently.”

Broader Impact

More than 80% of staff at this site are on zero-hours contracts, making it virtually impossible for them to challenge unfair deductions for fear of job loss. Local teachers report pupils staying in school while ill because parents at Sports Direct are too frightened to take sick leave.

The company’s strict regime raises questions about labour market flexibility and whether such “flexible contracts” truly benefit workers—or simply impose a modern-day workhouse model on thousands of employees.

What’s Next?

Sports Direct has dismissed some findings as “inaccurate” but has not provided substantive rebuttal. The Department for Business, Innovation and Skills insists HMRC investigates every complaint, while trade unions push for all agency staff to receive permanent contracts and proper pay for every minute worked.

For further details on these developments, read our in-depth report on how Sports Direct’s practices affect workers’ rights and wages.