Centrica and Holland & Barrett fined for underpaying staff

The recent revelation by the Department for Business and Trade (DBT) of nearly 500 employers fined for underpaying staff has shed light on the issue of minimum wage compliance in the UK. Among the companies named and shamed are British Gas’s parent company Centrica, Euro Garages, and Holland & Barrett.

Centrica, the owner of British Gas, was found to have failed to pay £167,815 to 356 workers, ranking eighth on the DBT’s list. A spokesperson for the company attributed the underpayments to technical faults in their payroll system between 2015 and 2019. They clarified that the issue primarily involved salary sacrifice arrangements and training bonds, amounting to around £160,000, in comparison to their annual UK wage bill of £1.2 billion.

Euro Garages, also known as EG Group, topped the list for short-changing 3,317 workers by approximately £824,000. The company, co-founded by billionaire brothers Mohsin and Zuber Issa, has undergone significant restructuring in the past year, selling off some of its UK operations. An EG Group spokesperson acknowledged historic payroll errors between 2015 and 2019, stating that all affected employees had been fully reimbursed in compliance with HMRC regulations.

Holland & Barrett, a popular High Street retailer, failed to pay over £153,000 to 2,551 workers due to past issues with minimum wage payments dating back to 2015. The company addressed the matter in 2022, attributing the underpayments to legacy practices such as requiring specific shoes, unpaid training completed at home, and time spent preparing for shifts at their distribution site in Burton. A company spokesperson emphasized that the underpayment was not intentional and that Holland & Barrett remains committed to fair pay practices, paying store staff above the National Living Wage and adhering to all regulations.

The TUC general secretary, Paul Nowak, condemned the underpayment of workers, emphasizing the detrimental impact on individuals, families, and the economy. The government’s ongoing investigations have highlighted the importance of enforcing wage laws to protect workers’ rights and ensure fair treatment in the workplace.

As the minimum wage for over-21s stands at £12.21 an hour, with younger employees aged 16 to 20 entitled to the National Minimum Wage set at £10 an hour, it is crucial for employers to comply with these regulations to uphold the rights of their workforce. The transparency provided by the DBT’s naming and shaming initiative serves as a reminder to all companies to prioritize fair pay practices and ensure compliance with minimum wage laws.