Sports Direct conditions 'like a Victorian workhouse'

Conditions at Sports Direct stores are "like a Victorian workhouse", a damning report by MPs has found.

The business committee said it was presented with a "disturbing picture" of work practices at the stores and its warehouse in Shirebrook, Derbyshire.

This included employees not being paid national minimum wage, health and safety breaches and staff being penalised for taking breaks or sickness.

Some employees were even promised permanent contracts in exchange for sexual favours, the report found.

Founder Mike Ashley has bluntly been told he is accountable for the "appalling" conditions.

  • What were the findings of the report?

The report said a spotlight had been shone on "extremely disturbing" working practices with employees even promised permanent contracts in exchange for sexual favours.

Employees were penalised for taking breaks or sickness.

They were not paid national minimum wage and there were breaches of health and safety regulations.

Employment agencies The Best Connection and Transline, which employ staff for Sports Direct, were criticised for deducting money from low-paid workers without proper explanation or justification.

The MPs said it was "irresponsible, if not reckless", for Sports Direct to give the two employment agencies £50 million when they did not seem to have a basic understanding of employment law.

Transline was heavily criticised by the committee who said it "deliberately misled" with the evidence it gave to the inquiry.

Sports Direct boss Mike Ashley is 'accountable', the report said. Credit: Reuters
  • What did MPs say?

Committee chairman Iain Wright said the working practices were "closer to that of a Victorian workhouse than that of a modern, reputable High Street retailer".

The report by the business committee added: "Workers at Sports Direct were not being paid the national minimum wage, and were being penalised for matters such as taking a short break to drink water and for taking time off work when ill.

"Some say they were promised permanent contracts in exchange for sexual favours.

"Serious health and safety breaches also seem to have occurred."

  • What happens next?

Mike Ashley has said that he will engage with the Unite union in response to the findings and will continue to check on progress made in improving conditions.

The committee said it would visit Shirebrook, called for a review of health and safety in the warehouse, and said the Gangmaster and Labour Abuse Authority should look into employment practices.

  • What has been the reaction?

Sports Direct said it would study the contents of the report "very carefully".

"It is our policy to treat all our people with dignity and respect," a company spokesman said.

"We are pleased to see that the committee has recognised Mike Ashley's commitment to engage in addressing any shortcomings in the working practices at Sports Direct."

A government spokesman said the report included some "extremely concerning findings".

The spokesman added: "Everybody deserves to be treated with dignity and respect and the law is clear that pay must be fair no matter who you are or what you do."