The UK’s Department for Business and Trade (DBT) has released a list of nearly 500 employers, including Centrica (British Gas), Euro Garages, and Holland & Barrett, who have been fined for underpaying employees, amounting to over £10 million. The report indicates that around 42,000 workers were underpaid, resulting in repayments exceeding £6 million.
Business Secretary Peter Kyle noted that employers typically seek to avoid being included on such lists, emphasizing the government’s commitment to ensuring compliance with wage regulations. All companies named attributed their failures to historical payroll issues and reported that affected employees have since received their due compensation.
Fines imposed on these employers can reach twice the amount owed to workers, with some underpayment cases dating back to 2013. Euro Garages, also known as EG Group, has been identified as the highest offender, underpaying 3,317 employees by over £824,000 in investigations spanning 2018 to 2023. The company, co-founded by Mohsin and Zuber Issa, has scaled back UK operations, selling off several businesses but maintains some franchise locations.
A spokesperson from EG Group indicated that the payroll discrepancies occurred between 2015 and 2019 but have since been resolved, stating that all affected employees were reimbursed in collaboration with HM Revenue and Customs (HMRC). They also highlighted improvements to payroll systems to ensure ongoing compliance.
Centrica, in eighth place on the DBT list, was found to have underpaid £167,815 to 356 employees. The company referenced technical faults in their payroll system as the cause and claimed the underpayment primarily involved salary sacrifice arrangements rather than take-home pay.
Holland & Barrett reported underpayments totaling over £153,000 affecting 2,551 workers. The retailer attributed these issues to legacy practices related to staff requirements for specific shoes and unpaid training. The company expressed disappointment over being publicly named three years after resolving the matter and stated that it pays its store staff approximately 5% above the National Living Wage, which is currently £12.21 per hour for those over 21.
Source: https://www.bbc.com/news/articles/c4g7zrmpld0o?at_medium=RSS&at_campaign=rss