Underpayment of workers rockets by 73% in a year

Submitted by sglenister on Fri, 28/10/2016 - 14:39

28 October 2016

New figures by the Office for National Statistics show that the number of people being paid below the minimum wage has rocketed by 73% in the last year.

The data showed there were 362,000 people earning below the National Minimum Wage or National Living Wage in 2016, although the TUC has warned this number is likely to underestimate the full extent of underpayment as it does not include people who are misclassified as 'self employed', 'volunteers' or 'interns'.

TUC General Secretary, Frances O’Grady, said: "There should be no hiding place for bosses who try to cheat their workers out of a fair day's pay. Failing to pay the minimum wage squeezes those who have the least."

Indeed, the Institute of Employment Rights argues for the strengthening of statutory rights like the National Living Wage in conjunction with the promotion of collective bargaining and improved enforcement of labour law to prevent employers from exploiting vulnerable workers.

These proposals form part of our Manifesto for Labour Law – 25 policy recommendations now adopted by the Labour Party – draws upon a wide evidence base and international comparisons to layout a framework for the reform of UK employment law.

Click here to read more about the Manifesto and purchase your copy from just £10

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