UK politicians have delivered a damning indictment of working conditions at retail giant Sports Direct and warned they could become the norm across Britain.
Founder Mike Ashley was told he was accountable for the "appalling" working conditions at the firm's stores and its warehouse in Shirebrook, Derbyshire.
A hard hitting report said that workers were treated as "commodities" rather than human beings.
The UK Business Committee's report said it had been presented with a "disturbing picture" of work practices during its inquiry into the company.
The MPs said evidence presented by employment agencies the Best Connection and Transline, which employ staff for Sports Direct, was "woefully poor" and in some cases incorrect.
The committee said it was "deliberately mislead" by Transline and urged the company to clarify some of its evidence.
The report said a spotlight had been shone on the working practices of Sports Direct, which was "extremely disturbing".
"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," it stated.
"Some say they were promised permanent contracts in exchange for sexual favours. Serious health and safety breaches also seem to have occurred," it stated.
"For this to occur in the UK in 2016 is a serious indictment of the management at Sports Direct," it added.
"The evidence we heard points to a business whose working practices are closer to that of a Victorian workhouse than that of a modern, reputable High Street retailer," commented the committee's chairman Iain Wright.
"For this to occur in the UK in 2016 is a serious indictment of the management at Sports Direct and Mike Ashley, as the face of Sports Direct, must be held accountable for these failings," Mr Wright said.
"It's seems incredible that Mike Ashley, who visits the Shirebrook warehouse at least once a week, was unaware of these appalling practices".
"This suggests Mr Ashley was turning a blind eye to conditions at Sports Direct in the interests of maximising profits or that there are serious corporate governance failings which left him out of the loop in spite of all the evidence," he added.
Mr Wright said that the Sports Direct model has proved successful for Mr Ashley and there is a risk this will become much more the norm in Britain.
"A modern and developed economy focused on innovation and supporting entrepreneurialism and enterprise cannot be allowed to operate like this. We were also disgusted at the poor evidence given by the agency companies, who deduct money from low-paid workers without proper explanation and justification," he added.
As well as his retail business, Mr Ashley owns UK soccer club Newcastle United.
Sports Direct is also a major shareholder in the Heatons chain here, while earlier this year the company bought the site of the former Boyers department store on North Earl Street in Dublin.
