Forecourt and convenience firm EG Group has been fined by the government for failing to pay 3,317 staff the National Minimum Wage.
The underpayments, totalling £824,383, or an average of £248 per worker, took place between 2015 and 2019 and the firm says the matter has been “fully rectified”, with all staff reimbursed.
EG Group no longer operates filling stations in the UK, having sold 356 forecourts to Asda in 2023, with a further 34 being bought by Zuber Issa the following year.
A spokesperson for the company says: “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.”
Firms can be fined up to £20,000 for failing to pay the National Living Wage (NLW) or National Minimum Wage (NMW), which are often used interchageably, though the NMW applies to those aged 20 or younger. The NLW is for those aged 21 and over and currently stands at £12.21 per hour. From 2015 to 2019 it ranged from £6.70 to £8.21.
EG Group is just one name in a list of almost 500 firms fined by the Government for not paying the minimum wage, with more than £10m in penalties issued in total.
A number of other well-known firms were also issued penalties, including Caffe Nero’s parent firm Nero Holdings, Cineworld, Avis Budget car hire, Lincolnshire Co-operative, Adecco, Centrica, and Holland & Barrett.
Some local authorities and government organisations were also fined, including Coventry City Council and Birmingham NHS Foundation Trust.
Staff who have not been paid the minimum wage can complain to HMRC, which also accepts anonymous complaints from third parties. As well as issuing fines, the taxman can force companies to repay monies owed, going back a maximum of six years.
Commenting on the combined £10m penalties, Business Secretary Peter Kyle said: “This action comes as the government introduces the biggest upgrade to workers’ rights and enforcement for a generation through its Plan to Make Work Pay, which is set to directly benefit around 15 million, or half of all UK, workers.”
