Tuesday 18 October 2016 4:11 pm

Asos to move employees onto a higher living wage in the next 18 months

Hitting back at accusations that it mistreats workers, Asos said today it will be moving employees onto the living wage foundation level of pay over the next year and a half.

The Living Wage Foundation sets a separate minimum wage for employers that companies opt-in for. Currently, companies in the scheme pay a minimum of £8.25 an hour, and £9.40 an hour in London. The government's national living wage is £7.20 an hour at the moment.

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Other retailers that have committed to the living wage foundation level include Burberry and Lush.  

Asos said in a statement: "There has been comment recently in the media and elsewhere on working conditions in our warehouse which are inaccurate and misleading.

"For example, contrary to what has been alleged, we do currently pay above the national living wage for all employees and are committed to migrating toward the living wage foundation level over the next 18 months."

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The online retailer also highlighted that it does not use zero-hours contracts.

Asos was criticised for the working conditions in its warehouse after Labour MP Owen Smith said it was "the new Sports Direct"

Shore Capital analysts defended Asos in a note this week, saying the company had invested £3m in its warehouse over the past year and allows staff to go to the loo when they want.