Holland & Barrett Named and Shamed for National Minimum Wage Underpayments

Holland & Barrett is one of the latest major high street retailers to be named by the UK government for failing to pay its staff the National Minimum Wage. The company was listed among nearly 500 employers who have been fined a total of over £10 million for similar breaches.

 

The list, published by the Department for Business and Trade (DBT), revealed that Holland & Barrett underpaid more than 2,551 workers a total of over £153,000. They were 9th in the list of worst offenders. The government's crackdown has ensured that 42,000 workers nationwide were repaid more than £6 million.

Why Was Holland & Barrett Named?

According to the government's investigations, which covered underpayments from 2018 to 2023, Holland & Barrett's breaches occurred between 2015 and 2021.

In a statement, a spokesperson for Holland & Barrett stated that the underpayment was not deliberate. The issues were linked to several "legacy practices," including:

  • Requiring team members to wear specific shoes without compensation.
  • Unpaid training completed by employees at home.
  • Time spent by staff preparing for their shifts at the company's Burton distribution site.

The company confirmed that all historic issues were identified and fully rectified in 2022, with all affected staff being reimbursed.

Company Response and Commitment to Fair Pay

Holland & Barrett expressed disappointment at being named three years after the matter was settled with HMRC. Despite this, the health and wellness retailer reaffirmed its commitment to fair pay, highlighting that it currently pays its store staff approximately 5% above the National Living Wage and complies with all regulations.

"We respect the transparency of the scheme, but we are disappointed that naming has occurred over three years after the matter was settled," a Holland & Barrett spokesperson said.

Other Major Companies on the List

Holland & Barrett was not the only well-known company named. The list also included:

  • EG Group (Euro Garages): Topping the list for underpaying 3,317 workers around £824,000.
  • Centrica (parent company of British Gas): Failed to pay £167,815 to 356 workers due to "historic technical errors" in its payroll system.

Business Secretary Peter Kyle stated the government is cracking down on "those not playing by the rules," while TUC general secretary Paul Nowak emphasised that "there's no excuse for workers being cheated out of money they're owed."

All employers on the DBT list were fined up to double the amount they owed to staff. The current National Living Wage for over-21s is £12.21 per hour.

Source: BBC