Major UK Firms Fined £10.2 Million for Minimum Wage Violations
Nearly 500 companies including British Gas owner Centrica, Holland & Barrett, and EG Group have been fined a combined £10.2 million for underpaying thousands of workers over several years.
Key Takeaways
- 491 employers fined for minimum wage violations
- £10.2 million total penalties imposed
- 42,000 workers repaid after being underpaid
- EG Group topped the list with £824,384 owed to 3,317 staff
Top Offenders and Their Penalties
EG Group, co-founded by the billionaire Issa Brothers, failed to pay £824,384 to 3,317 workers – averaging £250 per employee. The company has since reduced its UK operations, selling petrol forecourts and Cooplands bakeries while maintaining Starbucks franchises.
Centrica, parent company of British Gas, ranked among the top 10 offenders, owing £167,815 to 356 workers – approximately £460 per person on average.
Retail Sector Violations
High street retailers featured prominently in the government’s naming round. Go Outdoors placed seventh on the list, owing £240,106 to 2,058 workers, while Holland & Barrett ranked ninth with £153,079 owed to 2,551 employees.
Current Wage Standards
The national living wage increased to £12.21 in April 2024, up from £11.44 in the previous year. For younger workers, minimum rates now stand at £10 for 18-20-year-olds and £7.55 for apprentices and under-18s.
Government Response
Business Secretary Peter Kyle stated: “Every worker deserves a fair day’s pay for a fair day’s work, and this government will not tolerate rogue employers who short-change their staff.”
He added: “I know that no employer wants to end up on one of these lists. But our Plan to Make Work Pay cracks down on those not playing by the rules.”
Company Response
A Holland & Barrett spokeswoman explained the underpayment resulted from “historic issues dating back to 2015-2021” including requirements for specific footwear, unpaid home training, and preparation time at their distribution site.
She emphasized: “This was not a case of deliberate underpayment. All arrears were repaid in full once identified, and we acted swiftly to upgrade processes and systems.” The company expressed disappointment at being named three years after resolving the matter.
This marks the second major naming round this year, following June’s list of over 500 employers including Pizza Express, Lidl and British Airways for violations between 2015-2022.
