A PENARTH business has defended itself after it was accused of paying an employee below the national minimum wage.

Finite International Logistics Limited settled a case after it was accused of neglecting to pay £119.92 to an employee who worked on a freelance basis.

The general trade union GMB has warned that Finite, as well as five other Wales employers accused of not paying the minimum wage, would also owe holiday pay.

The other Welsh businesses accused of paying below the minimum wage include Pontcanna Hair Studio Ltd in Cardiff, Florence Opportunities Ltd, trading as Morgan Edward Hair & Beauty in Carmarthen, Ruzi Ruzyyev, a car wash operator in Carmarthen, Michael Kearney trading as Electrical Estimates in Ceredigion, and The Bell at Skenfrith Ltd in Skenfrith.

John Phillips, GMB Wales Secretary, said "The employers named and shamed by the Department for Business, Innovation & Skills (BIS) for failing to pay the National Minimum Wage will also, by definition, owe their workers arrears of holiday pay.

“However, as HMRC’s enforcement powers are limited only to the National Minimum Wage there is no enforcing body to oblige those employers to pay the holiday arrears.”

He added: “Although this could amount to hundreds of pounds per worker it would cost them more than that to pursue their entitlement at an Employment Tribunal so they are caught in a trap. They are owed holiday pay arrears, the government enforcement agency doesn't have the authority to help them and their access to justice is denied by the prohibitive cost of doing so.

“This unfair loophole would be closed with Labour’s plan to do away with Tribunal Fees.”

Rob Leering, business owner of Finite, said: “Finite International are committed to being good employers. The amount of £119.92 relates to one individual who refused to sign a contract of employment, and offered us freelance services from his home in Bristol. Two years after his services were withdrawn, a claim was made which we settled in good faith as it was small. Had we been advised that we would later be named in this way we would have resisted this claim, and we are disappointed that it may affect our reputation.”