Pay Cuts Exposed: Major Companies Fined for Wage Violations

Major corporations have been put under scrutiny as the UK government cracks down on employers failing to pay the minimum wage. Companies like Centrica (owner of British Gas), Euro Garages, and Holland & Barrett were named among those fined over £10 million for underpaying staff, impacting about 42,000 workers who will be reimbursed over £6 million in back pay.

The Department for Business and Trade (DBT) has taken a firm stance against employers, as Business Secretary Peter Kyle noted the government’s commitment to ensuring compliance with wage laws. Each of the companies cited attributed their violations to historical payroll issues, with assurances that all affected staff have now been reimbursed.

Among the offenders, Euro Garages topped the list, cheating 3,317 workers out of nearly £824,000 during investigations conducted from 2018 to 2023. The company, once co-founded by billionaire brothers Mohsin and Zuber Issa, has since scaled back UK operations.

Centrica reported a shortfall of £167,815 affecting 356 workers, blaming technical payroll errors between 2015 and 2019. The firm emphasized that the issues were resolved quickly upon identification, primarily affecting salary sacrifice arrangements rather than actual take-home pay.

Holland & Barrett faced fines after failing to compensate 2,551 employees due to complications with policies that demanded certain requirements from staff, resulting in underpayments exceeding £153,000 between 2015 and 2021. The company asserted that it has since corrected these practices.

As wage compliance continues to be a critical issue, scrutiny remains high for firms looking to maintain their reputations while navigating the complexities of labor laws. In light of current figures, the National Living Wage stands at £12.21 per hour for adults, with younger employees receiving the National Minimum Wage of £10 per hour. The government’s actions underscore the push for fair pay across all sectors.