MPs have praised Sports Direct’s move to pay back staff but warned that its working practices remain “under the spotlight”.

Parliament’s Business, Innovation and Skills (BIS) Committee has welcomed news that Sports Direct warehouse workers are expected to receive back pay totalling about £1m for non-payment of the minimum wage.

In its response to the report from union Unite, it has warned however that working practices at the retailer’s Shirebrook warehouse continue to be “under the spotlight”.

BIS Committee chair Iain Wright MP said: “In June when Mike Ashley appeared before the committee he admitted for the first time that workers at Sports Direct’s Derbyshire warehouse were paid below the minimum wage. That is unacceptable.

“It has now been reported the company is acting to put this right. The back payments represent a lot of money which employees should have received in the first place.”

Wright added: “While this is good news, working practices continue to be under the spotlight at Sports Direct.

“Mike Ashley will be updating us in the autumn on the steps he has taken to address the appalling practices that have been identified and we will be checking that he is as good as his word.”

Sports Direct founder Mike Ashley admitted to MPs in June that staff at its Shirebrook warehouse were effectively paid below the minimum wage, owing to rigorous unpaid searches at the end of shifts.

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