A recent study by Middlesex University has found that 1 in 20 workers are not being paid holiday pay amounting to an estimated £1.5bn being owed. A further £1.2bn is also owed in unpaid wages. Most of these employers are based in the gig economy, which is seemingly a never-ending vortex of bad publicity.
The holiday pay issue stems from grey employment status which does not state whether a worker is entitled to holiday pay and means many do not claim pay when they are owed it. However, last week’s EU case states that workers can now claim this when they leave employment as the right to pay continues to accrue throughout employment.
The study found there are two main types of behaviour to avoid paying a worker for work done. The first, regularly manipulating the hours worked to skim a few hours off the worker’s timesheet, the second, claim the business is struggling to defer payment and ultimately pay less.
Citizens Advice has reported that wage theft has doubled over the past 3 years with many employers winding up a company that owes workers money then setting up a phoenix company at the same address with the same directors performing the same business.
To read the full report, Unpaid Britain, please click here.