UK Government Fines Centrica, Holland & Barrett £10m for Underpaying Staff
In a move to crack down on companies that fail to pay the national minimum wage, the UK government has fined nearly 500 employers, including British Gas owner Centrica and health food retailer Holland & Barrett, a total of over £10 million. According to the Department for Business and Trade (DBT), nearly 42,000 workers were repaid more than £6 million in back pay.
The fines, which can be up to double the amount owed, are part of the government's efforts to enforce compliance with the national minimum wage. The DBT released a list of employers who failed to pay their staff the correct wages, including Centrica, Euro Garages, and Holland & Barrett. These companies blamed past payroll problems for the underpayment.
The issue of underpayment in the UK workforce has been a growing concern, with many workers facing financial hardship due to employers' failure to pay the minimum wage. Business Secretary Peter Kyle said: "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." According to Kyle, the government's efforts aim to ensure that workers receive fair compensation for their work.
Centrica, which owns British Gas, failed to pay nearly 170,000 to 356 workers, according to the DBT. The company has faced criticism in the past for its handling of employee wages and benefits. In a statement, Centrica said: "We take our responsibility to pay our employees correctly very seriously and are working hard to resolve any issues that have arisen."
Holland & Barrett also faced fines for underpaying staff, with the DBT stating that the company owed nearly 1,000 workers £250,000 in back pay. A spokesperson for Holland & Barrett said: "We apologize for any inconvenience caused by our past payroll problems and are committed to ensuring that all employees receive their correct wages."
The government's efforts to enforce compliance with the national minimum wage have been welcomed by trade unions and worker advocacy groups. According to a statement from the Trade Union Congress (TUC), "This is a significant step forward in tackling underpayment in the UK workforce. We welcome the government's commitment to cracking down on employers who fail to pay their staff the correct wages."
The DBT has stated that it will continue to monitor and enforce compliance with the national minimum wage, with plans to increase fines for repeat offenders. As part of its efforts, the government is also introducing new measures to improve transparency and accountability in the workplace.
In conclusion, the UK government's move to fine nearly 500 employers £10 million for underpaying staff highlights the ongoing issue of underpayment in the UK workforce. While some companies have faced criticism for their handling of employee wages, others have welcomed the government's efforts to crack down on non-compliance. As the government continues to enforce compliance with the national minimum wage, workers and trade unions are calling for greater transparency and accountability in the workplace.
Sources:
Department for Business and Trade (DBT)
BBC Business
Centrica
Holland & Barrett
This story was compiled from reports by BBC Business and BBC Business.