According to the latest research, more than 1 million UK workers did not receive any of the holiday pay that they are legally entitled to.
The analysis, published by the thinktank, the Resolution Foundation, found that workers in the UK are being failed by employers, with a rise in poor working conditions in the last 10 years.
According to the research, one in 10 workers do not receive a payslip, despite this being a legal requirement, which makes it difficult for individuals to check if their pay, pension and holidays are correct, as well as checking for deductions.
Workers under 25 and over 65 are the most likely not to receive a payslip, with one in six workers over 65 stating that they have no paid holiday entitlement, which is the highest proportion of any group. The research also found that under 25s are almost twice as likely to be paid less than the minimum wage.
HM Revenue & Customs (HMRC) identified 200,000 cases of workers not receiving the minimum wage due to enforcement work last year. The research by the Resolution Foundation found that one-quarter of individuals earning within 5p of the minimum wage (£8.21 for over 25s) were paid less than the legal minimum.
The Government has increased the power of resources of HMRC, the Labour Abuse Agency and the Gangmasters as they attempt to clamp down on workers being exploited. However, there is still a reliance on individuals bringing cases to employment tribunals, with more than 100,000 applications made to the employment tribunal system in 2018.
Lindsay Judge, Senior Economic Analyst at the Resolution Foundation, said: “The UK has a multitude of rules to govern its labour market – from maximum hours to minimum pay. But these rules can only become a reality if they are properly enforced.
“Labour market violations remain far too common, with millions of workers missing out on basic entitlements to a payslip, holiday entitlement and the minimum wage.”
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