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More than a million UK workers denied legal holiday pay

holiday-entitlement

What you need to know

More than a million workers in Britain do not receive holiday pay they are entitled to by law. This is according to analysis from the Resolution Foundation. In addition to this, almost one in 10 workers do not receive a legally required payslip, making it hard for them to calculate whether they are receiving the correct wage, pension and holiday entitlement. Statistics show that workers in smaller businesses are more likely to be on zero-hours contracts and are often without payslips or holiday entitlement. 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 pay slip, holiday entitlement and the minimum wage.”

Today’s labour market looks nothing like it did more than a decade ago. Since the financial crash in 2008 there has been an increase in zero-hour contacts and a rise in undocumented workers. Tax officials at HMRC have also identified a record 200,000 cases of workers not receiving the minimum wage as a result of enforcement work last year.

Key Findings in the Report

To date, underpayment of the National Living Wage and National Minimum Wage (NLW/NMW) has been the most thoroughly studied type of labour market abuse. Not least because it is relatively easy to measure objectively. 

One-in-twenty workers report having no paid holiday. This labour market violation appears to be very much a feature of the fringes of the labour market, including those working in atypical ways.

Close to one-in-ten workers report that they are not given a payslip. The youngest and oldest workers, immigrants and agency workers are reporting higher-than-average rates of non-receipt.

The fact that many of the same groups (young people, older workers, those in small firms and working in atypical ways) appear to be at greatest risk of each type of labour market.

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We have extensive experience in handling employment matters on behalf of clients. If you wish to contact us regarding problems at work and find out how we can help you , please contact us online or call us.

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