According to research by the Resolution Foundation some workers are still missing out when it comes to basic rights such as paid holiday, the national minimum wage and payslips. The research shows that younger and older workers are likely to suffer most as are those workers who have atypical employment, such as those on zero hours contracts.
These insights can be helpful for employers when it comes to assessing whether the law is being complied with in their workplace as it highlights some areas of particular risk.
The research showed that of those who participated:
- 5% of workers did not receive any paid holiday last year. Of those, 47% were on zero hours contracts. More than one in five of those who reported receiving no holiday entitlement were either under 25 or over 65.
- 23% of workers on or earning just over the national minimum wage were reportedly earning less than the legal minimum. Workers aged 25 and under are more than twice as likely to be underpaid the minimum wage than any other age group. It was also found that underpayment was most likely for workers in small businesses.
- 9% of employees reported that they did not receive any payslips in the years 2016-18. Small and large organisations alike seemed to struggle with this requirement.
In terms of sectors which are at higher risk of non-compliance with the law in relation to these rights:
- The childcare sector was the most likely to pay staff aged 25 and over below the national living wage, followed by employers with staff in office work and leisure staff.
- The hotel and restaurant sectors were found to be ones where workers were most likely to miss out on their legal entitlements to paid holiday and payslips.
What your employees are entitled to
It’s important for all employers to ensure that their employees are getting the rights they are entitled to as a failure to do so can lead to the risk of an employment tribunal claim.
As a brief reminder:
- As a statutory minimum, employees are entitled to 5.6 weeks holiday a year (pro rata for employees who start or leave employment part way through the holiday year).
- The current minimum wage rates are:
- £8.21 for employees aged 25 and over
- £7.70 for employees aged 21-24
- £6.15 for employees aged 18-20
- £4.35 for employees aged 16 -17
- £3.90 for apprentices under 19 years old/those who are over 19 but who are in the first year of their apprenticeship
If you have any questions regarding any employment law matters, please do not hesitate to contact Kingfisher Professional Services Ltd as we are happy to help.