Three Shropshire firms fined for failing to pay workers the minimum wage
A Shropshire childcare company failed to pay several workers almost £2,000, the Government has revealed, as it announced hundreds of firms have been fined for failing to pay the National Minimum Wage.
Two other employers in the county - including a floral business and hotel company - were also fined or failing to pay staff the legal minimum.
British Gas owner Centrica, EG Group and Holland & Barrett were also among the latest firms to be named by the Government for failing to pay some of their staff the minimum wage.
The Department for Business and Trade (DBT) released a list of 491 employers that underpaid workers during the period between 2018 and 2023.
They will pay a fine amounting to a combined £10.2 million as a result of breaking the rules.
It means pay for some staff fell short of the national minimum wage, or the national living wage, which is what the Government calls the minimum wage for those aged over 21.
Shropshire companies who failed to pay minimum wage:
Hazle Farm Child Care Limited, based in Shrewsbury, failed to pay £1,982.61 to 11 workers, it has been revealed.
The Floral Company UK Limited, trading as Peony and based in Shifnal, failed to pay £529.87 to two workers.
Meanwhile, the Wynnstay Hotel in Oswestry failed to pay £680.59 to 12 workers in 2019/2020. The Coaching Inn Group Ltd, based in Lincolnshire, which took over the hotel two years later, said it was an "inherited issue" and that when the company became aware of the underpayment it "settled the arrears immediately".
Other West Midlands companies who failed to pay minimum wage:
The Royal School, Wolverhampton, failed to pay £3,912.97 to one worker.
The school said the non-payment related to an "individual, historic and complex case".
A spokesperson told the Express & Star: "The Royal School Wolverhampton is aware of the matter referenced in the Government’s recent publication. The situation related to an individual, historic and complex case which, once identified, was reviewed and fully resolved with both the individual and the relevant authorities."
Genting Casinos UK Limited, of Birmingham, failed to pay £303,936.69 to 1,583 workers.
The University Hospitals Birmingham NHS Foundation Trust, which runs the Good Hope Hospital, Heartlands Hospital, Queen Elizabeth Hospital Birmingham and Solihull Hospital, failed to pay £8,086.15 to 27 workers.
Jhoots Healthcare Limited, Walsall, failed to pay £6,629.43 to 39 workers.
Meanwhile Nexus Care Services, of Sutton Coldfield, failed to pay £12,803.62 to 58 workers.
The company told the Express & Star the underpayment was "unintentional" and that it has subsequently improved its "internal processes".
All of the employers named were approached for comment.
In total, around 42,000 people have been repaid by their employers after being left out of pocket, the DBT said.
EG Group short-changed its workers the most, according to the Government’s latest investigation of pay.
The company, which was co-founded by the billionaire Issa Brothers, but who have since stepped back from leading the firm, failed to pay £824,384 to 3,317 workers.
This meant individual employees were underpaid about £250 on average.
The company has significantly reduced the size of its UK operations over the past year, selling its UK petrol forecourts business and Cooplands bakeries. It still runs Starbucks franchise stores across the UK.
Another in the top 10 was Centrica, which owns British Gas, having failed to pay £167,815 to 356 workers – amounting to about £460 on average.
High street retailers Go Outdoors and Holland & Barrett were also identified by the DBT in its latest naming round.
Go Outdoors was number seven on the list, owing £240,106 to 2,058 workers.
Holland & Barrett, based in Birmingham, was ninth, having failed to pay £153,079 to 2,551 employees.
The national living wage was £11.44 in the year to the end of March, and has risen to £12.21 since April.
The minimum wage for 18-20-year-olds rose to £10 this year, and for apprentices and those aged under 18 it rose to £7.55.
The DBT released a list of more than 500 employers in June that underpaid workers between 2015 and 2022, including Pizza Express, Lidl and British Airways.
Business Secretary Peter Kyle said: “Every worker deserves a fair day’s pay for a fair day’s work, and this government will not tolerate rogue employers who short-change their staff.
“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.”
A spokesman for EG Group said: “These historic payroll issues that took place between 2015 and 2019 have been fully rectified. All affected employees were subsequently reimbursed in full in agreement with HMRC.
“Once these issues were identified, we implemented robust remedies to ensure future compliance in recognition of our employees’ vital contribution to our business.
“We are committed to the equitable treatment of our employees in full compliance with UK law.”
A spokesman for Centrica said: “This issue relates to a small number of historic technical errors which was put right as soon as it was identified.
“The total underpayment related primarily to salary sacrifice arrangements and training bonds, rather than take home pay, and was around £160,000 – our UK annual wage bill is currently around £1.2 billion.”
Centrica added that it was a “vocal advocate of the real living wage” and that it was “proud to have the largest unionised workforce in the UK”.
A spokeswoman for Holland & Barrett said: “Holland & Barrett has been named by the Government under the National Minimum Wage Naming Scheme, following a historic issue dating back to 2015–2021 which was fully resolved in 2022.
“This was not a case of deliberate underpayment. The issue stemmed from legacy practices such as requiring team members to wear specific shoes, unpaid training completed at home, and time spent preparing for shifts at our Burton distribution site.
“All arrears – totalling around £150,000 across the six-year period – were repaid in full once identified, and we acted swiftly to upgrade processes and systems.
“While we respect the transparency of the scheme, we are disappointed that naming has occurred over three years after the matter was settled.”
A spokeswoman for Go Outdoors said: “The payments made by Go Outdoors in 2022 relate to practices pre-dating the acquisition and integration of the business by JD Sports following an HMRC review.
“All payments that were due to colleagues and HMRC were settled in 2022.”
Comment Guidelines
Iconic Media encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.