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UK workers failing to receive paid holiday entitlement


One in 20 UK workers say they are not receiving any paid holiday entitlement and one in 10 say they do not receive a payslip, according to the Resolution Foundation.

The think-tank’s analysis, published on Monday, identifies the types of jobs and employers where these labour market abuse, and the widespread underpayment of the minimum wage highlighted by the Low Pay Commission this year, are most prevalent.

It found that workers “on the fringes of the labour market” were far more likely to be affected: Almost half of those on zero hour contracts and 40 per cent of those working on a temporary basis said they had received no paid holiday, even though they have the same statutory right to 5.6 weeks paid annual leave as almost all other workers.

At least a quarter of those earning within 5p of the minimum wage were earning below the legal minimum, the RF said, with those working in childcare most likely to be underpaid, and the smallest companies in breach of the rules far more often than larger organisations.

The hotels and restaurants sector emerged as the worst both for skimping on holiday and for failing to provide the payslips workers need to check whether they are receiving their due. Education — a sector where many specialist teachers work on zero hour contracts — was the second worst for denying workers their entitlement to paid holiday.

“Labour market violations remain far too common, with millions of workers missing out on basic entitlements,” said Lindsay Judge, senior economic analyst at the Resolution Foundation, adding that rules governing the labour market “can only become a reality if they are properly enforced.”

Weak enforcement of existing labour market rules undermines the government’s ambition to press ahead with rapid increases in the minimum wage, making it one of the highest in the developed world.

At present, the UK relies largely on individuals pursuing claims against employers through the tribunal system to enforce their rights — a system that came under severe strain after the government introduced fees for launching claims in 2013. Although these fees have now been abolished, funding pressures mean it can take months for claims to be resolved.

The Resolution Foundation’s analysis showed that the groups of people most likely to suffer from unlawful working practices — young people in particular — were those least likely to seek redress through tribunals. Managers were the least likely to suffer abuses, but most likely to make claims.

The government plans to strengthen enforcement by creating a single agency to replace the three existing bodies involved in policing labour market rules.

The Resolution Foundation urged the government to give the new agency “legal teeth”, as well as adequate funding and staffing; and said its early priorities should include investigations into the hospitality sector, and into companies that made extensive use of atypical employment contracts such as zero hour, temporary and agency working.



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