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Nearly 500 companies have been fined by the government for failing to pay legally mandated minimum wages to employees.
out of 491 employers has been identified by the Department of Trade and Commerce (DBT) for paying low wages to employees over the years centralowner of British Gas, holland and barrettAnd EG Group.
A combined fine of £10.2 million has been imposed on the companies implicated as a result of these labor law breaches. Underpayment included wages being less than the national minimum wage or the national salaryThe latter is applying for those aged 21 and above.
Overall, around 42,000 people have been paid by their employers after being left out of pocket, the DBT said.
EG Group made the most changes to its workforce between 2018 and 2023, according to the government’s latest pay investigation.
The company, which was co-founded by the billionaire Issa brothers but who have since stepped down from leading the company, failed to pay £824,384 to 3,317 workers.
This meant that individual workers were paid on average around £250 less.
The company has significantly reduced the size of its UK operations last year, selling its UK petrol forecourt business and Couplands Bakery. It still runs Starbucks franchise stores throughout the UK.
Another in the top 10 was Centrica, which owns British Gas, which failed to pay £167,815 to 356 workers – an average of around £460.
High street retailers Go Outdoors and Holland & Barrett were also recognized by DBT in its latest naming round.
Go Outdoors was seventh on the list, owed £240,106 to 2,058 workers.
Holland & Barrett was in ninth place after failing to pay £153,079 to 2,551 employees.
The national living wage was £11.44 at the end of March, and has risen to £12.21 since April.
This year the minimum wage increased to £10 for 18-20 year olds, and £7.55 for apprentices and those under 18.
The DBT in June released a list of more than 500 employers that underpaid workers between 2015 and 2022, including Pizza Express, Lidl and British Airways.
Business Secretary Peter Kyle said: “Every worker deserves a fair day’s pay for a fair day’s work, and this Government will not tolerate rogue employers who underpay their workers.
“I know no employer wants to be included on one of these lists. But our Pay for Work scheme cracks down on those who don’t follow the rules.”
A spokesperson for Holland & Barrett said: “Holland & Barrett has been named by the Government under the National Minimum Wage Nomination Scheme, following a landmark issue from 2015-2021, which was fully resolved in 2022.
“This was not a case of intentional underpayment. The issue arose from legacy practices such as requiring team members to wear specific shoes, completing unpaid training at home, and spending time preparing for shifts at our Burton distribution site.
“All arrears – approximately £150,000 over a six-year period – were repaid in full as soon as identified, and we acted quickly to upgrade processes and systems.
“Although we respect the transparency of the plan, we are disappointed that the renaming has occurred three years after the matter was resolved.”
Easy Group, Centrica and Go Outdoors have been contacted for comment.