Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Workplace cultureLatest NewsEmployment lawESGMinimum wage

Underpayment not reported due to ‘fear and insecurity’

by Rob Moss 25 Jul 2022
by Rob Moss 25 Jul 2022 Nomad Soul / Shutterstock
Nomad Soul / Shutterstock

Job insecurity and a ‘poisonous’ workplace culture leaves workers trapped in poor-quality jobs and vulnerable to exploitation, according to a Low Pay Commission (LPC) report on non-compliance and enforcement of the national minimum wage in Leicester’s textiles industry.

Multiple agencies have carried out large-scale joint enforcement operations in Leicester since 2020, in response to repeated reports of exploitation and minimum wage underpayment.

The LPC, which heard evidence on what was driving non-compliance and what enforcement bodies found, found a disconnect. While enforcement bodies found relatively modest non-compliance in Leicester, the LPC spoke to others who believed rule-breaking to be widespread and flagrant.

LPC chair Bryan Sanderson said: “The evidence we heard from workers in Leicester was striking. Despite some positive recent progress, job insecurity, a poisonous workplace culture and low expectations leave workers trapped in poor-quality jobs and vulnerable to exploitation. These same factors mean they are unlikely to report abuses, which undermines efforts to enforce workers’ rights.

National minimum wage

Six findings from the national living wage review

“The case of Leicester is not unique. Across the UK, workers in precarious positions face the same obstacles, with the same consequences for enforcement.

“The problem demands comprehensive action, including to give these workers greater security over their hours and incomes.”

After hearing evidence from workers, retailers, supply chain auditors, manufacturers, local government and enforcement officers, the commission said that recent changes in the textiles industry suggested that some evidence of underpayment may be historic and so less reflective of current situation.

But it found that the vulnerability of workers makes them more reluctant to provide information, and that there remains potential for employers to conceal underpayment from investigating bodies.

Commissioners made several recommendations for government:

  • The process for reporting abuses does not work for the most vulnerable low-paid workers and fails to engage the third-party bodies whom workers may trust more, or wider industry networks. They recommend HMRC looks into ways to address these problems
  • There is an ‘information gap’ between what industry and civil society groups think they have reported to official bodies, and what those official bodies are able to share and act on
  • Insecure work and uncertainty over hours and incomes are central to the vulnerability of workers to exploitation.

For this final point the LPC urged the government to act on recommendations it made around “one-sided flexibility” in the wake of the Taylor Review five years ago.

These included a right to switch to a contract which reflects normal hours, a right to reasonable notice of work schedules, and a right to compensation for shift cancellations made without reasonable notice.

HR roles in retail and wholesale on Personnel Today


Browse more HR roles in retail and wholesale

Rob Moss
Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

previous post
Businesses missing out on ‘rebound’ employees
next post
NHS workforce faces ‘greatest crisis in history’

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

Remaining with same employer can ‘trap’ low-paid in...

14 Sep 2023

‘Good work agreements’ needed to tackle low pay...

4 Sep 2023

National minimum wage: don’t fall into non-compliance

21 Aug 2023

Unite: Labour policy document ‘crosses red lines’

27 Jul 2023

Higher minimum wage ‘would help tackle social care...

6 Jul 2023

What the latest Uber case could mean for...

3 Jul 2023

More than 200 employers failed to pay minimum...

21 Jun 2023

Think tank seeks investment for basic income trial

5 Jun 2023

Five national minimum wage mistakes employers make

1 Jun 2023

Tipping Bill receives Royal Assent

3 May 2023

  • Discover the value of CIPD accreditation PROMOTED | See how the CIPD can increase your earning potential...Read more
  • What does it mean to be an HR professional in 2024? (survey) PROMOTED | The world of HR is changing rapidly...Read more
  • The Contractor Management Mastery Pack: Everything you need to manage and pay global contractors PROMOTED | Answers to cross-border...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2023

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2023 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+