In a stunning blow to one of Britain's best-known health retailers, Holland & Barrett has been ordered to pay over £1.7 million for systematically failing to pay the national minimum wage to thousands of employees.
The Department for Business and Trade uncovered widespread violations affecting approximately 8,900 workers between 2019 and 2023, exposing significant payroll failures within the company's operations.
Systemic Failures Uncovered
Government investigators found that Holland & Barrett had committed multiple breaches of minimum wage legislation. The company failed to properly account for time spent on essential security procedures, including bag searches conducted at the end of shifts.
Additionally, the retailer was found to have made unlawful deductions from employee wages for items such as corporate uniforms and training costs, further reducing workers' pay below the legal threshold.
Corporate Response and Remediation
Following the investigation, Holland & Barrett issued a statement acknowledging the violations and confirming that all affected employees have now received full back-payment with additional compensation.
'We sincerely apologise to all affected colleagues,' a company spokesperson stated. 'We've implemented comprehensive measures to prevent any recurrence, including enhanced time-recording systems and revised uniform policies.'
Government's Firm Stance
Minister for Enterprise, Markets and Small Business Kevin Hollinrake delivered a stern warning to other employers: 'All employers must pay their workers properly. With the national minimum wage increasing, it's crucial that workers receive their full entitlement.'
The case forms part of a broader government initiative that has identified nearly £16 million in back-pay owed to approximately 172,000 workers across various sectors.
Industry-Wide Implications
This substantial penalty serves as a stark reminder to retail chains and other employers of their legal obligations regarding worker compensation. The case highlights the importance of properly accounting for all working time, including mandatory security procedures and other work-related activities.
With the national living wage set to increase to £11.44 per hour in April 2024, regulatory scrutiny on wage compliance is expected to intensify across all sectors.
