Sports Direct to pay directly employed staff, casual workers above minimum wage

Sports Direct said it would pay its directly employed staff and casual workers above the National Minimum Wage from 1 January 2016.

The company, which has been under fire over a recent newspaper investigation over the way it treats staff at its main warehouse, said the pay rise would cost £10m a year on an annualised basis. It did not say how much it would increase workers' wages above the current rate of £6.70.

Chief executive Mike Ashley revealed the move in an interview with the Daily Mirror newspaper.

“I realise this is ambitious and it won’t be easy, but I believe as a FTSE 100 or even 250 company we have a responsibility to set a high moral standard," he said

“We’re putting our money where our mouth is and have notified the City we will be spending £10m ensuring all employees are above the minimum wage.”

He added that thousands of Sports Direct staff received “life-changing” bonuses each year.

However, thousands more on zero-hours contracts are not included in the bonus scheme, an issue which is the subject of legal action.