Holland & Barrett and British Gas owner among firms fined for underpaying staff

British Gas owner Centrica, EG Group and Holland & Barrett are among the latest firms to be named by the Government for failing to pay some of their staff the minimum wage.

The Department for Business and Trade (DBT) released a list of 491 employers that underpaid workers over several years.

They will pay a fine amounting to a combined £10.2 million as a result of breaking the rules.

It means pay for some staff fell short of the national minimum wage, or the national living wage, which is what the Government calls the minimum wage for those aged over 21.

In total, around 42,000 people have been repaid by their employers after being left out of pocket, the DBT said.

EG Group short-changed its workers the most, according to the Government’s latest investigation of pay between 2018 and 2023.

The company, which was co-founded by the billionaire Issa Brothers, but who have since stepped back from leading the firm, failed to pay £824,384 to 3,317 workers.

This meant individual employees were underpaid about £250 on average.

EG Group was top of the DBT’s list for failing to pay thousands of staff the minimum wage (EG/PA). PA Media

The company has significantly reduced the size of its UK operations over the past year, selling its UK petrol forecourts business and Cooplands bakeries. It still runs Starbucks franchise stores across the UK.

Another in the top 10 was Centrica, which owns British Gas, having failed to pay £167,815 to 356 workers – amounting to about £460 on average.

High street retailers Go Outdoors and Holland & Barrett were also identified by the DBT in its latest naming round.

Go Outdoors was number seven on the list, owing £240,106 to 2,058 workers.

Holland & Barrett was ninth, having failed to pay £153,079 to 2,551 employees.

The national living wage was £11.44 in the year to the end of March, and has risen to £12.21 since April.

The minimum wage for 18-20-year-olds rose to £10 this year, and for apprentices and those aged under 18 it rose to £7.55.

The DBT released a list of more than 500 employers in June 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 short-change their staff.

“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.”

A spokeswoman for Holland & Barrett said: “Holland & Barrett has been named by the Government under the National Minimum Wage Naming Scheme, following a historic issue dating back to 2015–2021 which was fully resolved in 2022.

“This was not a case of deliberate underpayment. The issue stemmed from legacy practices such as requiring team members to wear specific shoes, unpaid training completed at home, and time spent preparing for shifts at our Burton distribution site.

“All arrears – totalling around £150,000 across the six-year period – were repaid in full once identified, and we acted swiftly to upgrade processes and systems.

“While we respect the transparency of the scheme, we are disappointed that naming has occurred over three years after the matter was settled.”

EG Group, Centrica and Go Outdoors have been contacted for comment.