One of the main criticisms levelled against employment regulators is that they’re simply not keeping up with the real-life implications of looser working trends that have sprung up in the past few years.
Zero-hours contracts, temporary and agency working employment have all risen tremendously in the past decade yet more people than ever are seeing their guaranteed employment rights falling by the wayside.
It’s well known that workers in the “gig economy” don’t receive sick or holiday pay as standard and while there’s been an increase in resources to bodies such as the HMRC and the Gangmasters and Labour Abuse Authority, they still mainly rely on whistleblowers and individuals coming forward to report violations.
In the past year alone, more than 100,000 applications have been made to the employment tribunal system for perceived offences.
Amongst the findings in a recent report called “From Rights to Reality” by the Resolution Foundation were:
- As many as one in 20 workers didn’t receive any holiday pay last year despite being entitled to 28 days.
- One in ten workers don’t receive a regular payslip – which they’re legally entitled to. This means it’s harder for them to calculate they’re receiving the right level of pay, pension and holidays. They also can’t check if any further deductions are being made.
- Workers aged under 25 or over 65 are most likely not to a payslip. Additionally, one in six over 65 year-old workers received no holiday pay entitlement
- HMRC investigations found 200,000 cases or workers not receiving the minimum wage last year.
- One in seven workers in the hotel and restaurant sector didn’t receive any holiday entitlement – three times higher than the general rate
Linsday 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’re 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”.
When we speak to clients about their redundancy entitlements it’s not always about a redundancy payment.
Employees can be owed additional funds for lawfully due holiday pay, unpaid wages and notice periods.
All employees, including the company’s directors who in most cases will also be considered employees of the company, should be aware of their statutory entitlements regarding redundancy, notice, and 28 days holiday.
While most companies will legally keep track of their workers’ entitlements, it’s a good idea to do it yourself in case the worst should happen.
If you’ve been made redundant or are at risk of redundancy, or your business is struggling and you don’t know exactly where you stand, get in touch with us to find out more about what you’re entitled to. In a lot of cases, your total redundancy entitlement may be more than you were expecting and it’s important you know where you stand.