In a significant crackdown on wage violations, two prominent British companies have been handed substantial fines for systematically underpaying their workers, according to recent government findings.
Health Retail Giant Faces Backpay Order
Health and wellness retailer Holland & Barrett has been ordered to pay nearly £½ million in outstanding wages to over 1,700 workers. The investigation revealed that employees were required to undergo security checks outside of their paid working hours, effectively reducing their hourly pay below the legal minimum threshold.
The company, which operates more than 800 stores across the UK, has agreed to reimburse affected staff members dating back to 2019. This case highlights how seemingly minor policy requirements can accumulate into significant wage violations over time.
Energy Sector Subsidiary Also Penalised
In a separate but equally concerning case, British Gas Services Limited, a subsidiary of energy giant Centrica, has been fined £1.5 million for similar infractions. The company failed to pay approximately 500 installers for additional time spent traveling between their homes and first job assignments of the day.
This practice, which lasted for several years, meant that workers were effectively working unpaid hours during what should have been compensated work time. The company has committed to addressing these payment discrepancies and improving its payroll practices.
Government Stance on Wage Compliance
These cases form part of a broader government initiative to enforce minimum wage laws across all sectors. Business Minister Kevin Hollinrake emphasised that "paying the legal minimum wage is non-negotiable" and that all employers must uphold their responsibilities toward their workforce.
The government has named nearly 200 companies in its latest list of minimum wage violators, demonstrating the scale of compliance issues within the UK business landscape. These enforcement actions serve as a stark warning to other employers who might be cutting corners with worker compensation.
Broader Implications for UK Workers
These incidents raise important questions about wage practices in major corporations and the effectiveness of current enforcement mechanisms. While the reimbursements and fines provide some redress, they also indicate systemic issues that require ongoing vigilance from both regulators and employees.
Workers who suspect they might be receiving less than the legal minimum wage are encouraged to contact Acas (the Advisory, Conciliation and Arbitration Service) or HMRC directly to report their concerns.
