By Harshit, LONDON, 17 OCTOBER, 2025 — 8:30 AM BST
The UK government has publicly named and fined nearly 500 companies, including British Gas’s parent firm Centrica, Euro Garages, and Holland & Barrett, for failing to pay staff the national minimum wage, as part of a major crackdown on wage violations.
The Department for Business and Trade (DBT) revealed that the employers collectively owed millions in underpayments, with 42,000 workers short-changed a combined £6 million, while the firms themselves were fined more than £10 million. The department said the offenses—some dating back more than a decade—represent a “clear breach of UK labor law” and undermine fair employment standards.
A Major Crackdown on Wage Violations
Business Secretary Peter Kyle said the move reflects the government’s renewed focus on protecting vulnerable workers and penalizing employers who fail to comply with the law.
“We are cracking down on those not playing by the rules,” Kyle said. “Every worker deserves to be paid fairly for their labor, and companies that fall short will be held accountable.”
All employers listed were fined up to double the total amount they owed to staff, as the government sought to send a strong message about compliance.
Paul Nowak, General Secretary of the Trades Union Congress (TUC), praised the move but criticized the systemic failures that allowed such breaches to continue for years.
“There’s no excuse for workers being cheated out of money they’re owed,” Nowak said. “It’s bad for workers, bad for families, and bad for the economy.”
Euro Garages Tops the List of Offenders
At the top of the government’s list was Euro Garages (EG Group), the forecourt operator co-founded by billionaire brothers Mohsin and Zuber Issa. Between 2015 and 2019, the company underpaid 3,317 employees a total of £824,000, according to DBT’s findings.
EG Group, which has significantly scaled down its UK operations after selling its petrol forecourts business and Cooplands bakeries, still operates several Starbucks franchise stores nationwide.
In response, the company issued a statement acknowledging the underpayments but emphasized that all affected employees have since been reimbursed.
“These historic payroll issues have been fully rectified,” an EG Group spokesperson said. “All employees were reimbursed in full in agreement with HMRC. We have since improved our payroll systems to ensure full compliance.”
Centrica Admits ‘Technical Errors’ in Payroll System
Centrica, the parent company of British Gas, ranked eighth on the DBT list. The company failed to pay £167,815 to 356 employees, largely due to what it described as “technical errors” in its payroll system between 2015 and 2019.
A spokesperson for Centrica explained that the discrepancies primarily stemmed from salary sacrifice arrangements and training bonds rather than intentional wage deductions.
“This issue relates to a small number of historic technical errors which were put right as soon as they were identified,” the spokesperson said. “The total underpayment was around £160,000 against an annual UK wage bill of approximately £1.2 billion.”
Centrica emphasized that all issues were resolved in full cooperation with HM Revenue & Customs (HMRC) and that it continues to support fair pay policies.
Holland & Barrett Cites Legacy Payroll Practices
Retail giant Holland & Barrett, known for its health and wellness stores across the UK, was also cited for failing to pay more than £153,000 to 2,551 employees between 2015 and 2021.
The company attributed the underpayments to outdated operational practices, including unpaid training, time spent preparing for shifts, and uniform requirements that indirectly reduced take-home pay.
“This was not a case of deliberate underpayment,” a spokesperson said. “The issue stemmed from legacy practices such as requiring staff to wear specific shoes, unpaid training done at home, and time spent preparing for shifts.”
Holland & Barrett said the issues were resolved in 2022, with all staff reimbursed, and noted that it now pays store employees 5% above the National Living Wage.
“While we respect the transparency of the scheme, we are disappointed that naming has occurred over three years after the matter was settled,” the company added.
Government Sets the Record Straight on Minimum Wage Rules
Under UK law, the National Living Wage—the legal minimum for workers aged 21 and over—is currently £12.21 per hour, while employees aged 16 to 20 are entitled to the National Minimum Wage of £10 per hour.
The government said the public naming of employers serves as a deterrent to others and demonstrates its commitment to upholding labor rights.
“Fair pay is not optional,” Business Secretary Kyle said. “Employers who fail to meet their obligations will face the full weight of the law.”
Labor advocates say the move underscores the ongoing need for stronger wage enforcement and more frequent audits, particularly for large corporations with complex payroll systems.
