The Biggest & Best Portal to the Professional Property, Workplace and Built Environment Community

Sunday, 21 July

Minimum Wage Cheating Is On The Rise

The Low Pay Commission

A new report from the Low Pay Commission has found that the number of people paid less than the statutory minimum wage in the UK increased in 2018. The largest numbers of underpaid individuals work in hospitality, retail and cleaning and maintenance.

Taking a benchmark in April 2018 439,000 people were paid less than the hourly minimum wage they are entitled to. Of these, 369,000 were workers aged 25 and over paid less than the National Living Wage (NLW). This is an increase of around 30,000 on the previous year’s level of underpayment of the NLW, or a 2 percentage point rise in the share of workers entitled to the rate.

135,000 people were paid below £7.20 per hour (the 2016 introductory NLW rate).

LPC Chair Bryan Sanderson said: "Our analysis reveals that a worrying number of people are being paid less than the minimum wage. We recently celebrated 20 years of the minimum wage – it has raised pay for millions of workers, but it is essential that people receive what they are entitled to. It is also vital for businesses to be able to operate on a level playing field and not be illegally undercut on wages.

"The Government has made real progress with its enforcement of the minimum wage but more needs to be done to ensure employers comply in the first place and workers know how to enforce their rights."

 

Women victims

Women are more likely than men to be paid less than the minimum wage. Underpayment is also higher for the youngest and oldest workers. The largest numbers of underpaid individuals work in hospitality, retail and cleaning and maintenance. Childcare is the occupation with the highest proportion of underpaid workers.

 

Fines and arrears

Enforcement of the minimum wage by HM Revenue and Customs has benefited from increased funding, with a record number of workers identified as underpaid, arrears repaid, and fines levied on non-compliant employers in 2017/18. But other important measures – for example, the numbers of cases opened and closed – stood still and the overall figures were driven by a relatively small number of cases.

 

Communication

The LPC has called on government to continue to invest strongly in communications to both workers and employers around minimum wage compliance and enforcement.

Commenting on the publication of the Low Pay Commission's report, TUC General Secretary Frances O’Grady said: “Every worker deserves fair pay for their work. There can be no exceptions to the minimum wage.

 

"And there should be no hiding place for bad employers - that’s why the government must restart naming and shaming bad bosses who cheat their workers out of pay."

 

Picture: The Low Pay Commission has found minimum wage cheating is on the rise.

Article written by Brian Shillibeer

Share



Related Articles

Living Wage Laughed Out The Door - BEIS Strike Planned

Outsourced workers are set for indefinite strike action at the Department for Business, Energy and Industrial Strategy as their employers laugh at a Living Wage plan....

 Read Full Article
Work Insecurity - Living Hours Campaign Launched

The Living Wage Foundation has launched Living Hours, a new programme to tackle the widespread insecurity many 'employees' suffer over hours they might get to...

 Read Full Article
Poor Pay Packs Punch In England's East

441,950 East Of England residents in employment earned less than the real living wage of £9.00 per hour in the year to April 2018 a new GMB study has shown. The...

 Read Full Article
London Hospitals May See Sodexo Staff Strike

Tuesday April 30 saw three London hospitals hit by protests over pay involving porters, cleaners and domestic staff who work for Sodexo. The protests could escalate to...

 Read Full Article
Is The Tide Changing For Women In Security?

When Meghan Markle was made Duchess of Windsor, her decision to assign a female head of security received particularly close press attention. But the Duchess'...

 Read Full Article
Government Departments In Disarray As Migrant Workers Add To Brexit Woes

With the Government already in disarray over more Brexit drama, striking workers brought fresh disruption to the corridors of power on January 22 in fight for the living...

 Read Full Article
Minority Union Calls Strike On Ministry of Justice

The Ministry of Justice is expected to be forced to close for the duration of a 48 hour strike by security guards, cleaners and receptionists between 21st-23rd...

 Read Full Article
Fireworks Night And Real Living Wage Rockets

November 5, saw the Living Wage Foundation announce a new UK Living Wage hourly rate of £9 per hour, an increase of 25p per hour. And London Mayor, Sadiq Khan...

 Read Full Article
Aussie Rules Stump ISS - International Firm's Reputation Caught & Bowled

ISS Facility Services Australia was snared in a surprise night-time visit to the Melbourne Cricket Ground by Fair Work Ombudsman inspectors to investigate exploitation of...

 Read Full Article
Real Living Wage Champion

Enhance Office Cleaning has won the Living Wage Champion Award for recognised service providers. The 2018 Living Wage Champion Awards give recognition to individuals...

 Read Full Article