[IER] Non-compliance with NMW law rises for third year running

Fri Apr 26 11:21:47 BST 2019

IER News Brief 26/04/19

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news brief

Friday 26th April 2019

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Non-compliance with minimum wage laws has been on the increase for three years, official figures have revealed <https://ier.us12.list-manage.com/track/click?u=f121e48a8bb6d3101590c12d3&id=067348274a&e=71131c031b> .

A new report from the Low Pay Commission showed that 439,000 people were paid below their legal entitlement in April 2018, 2% higher than in the previous year, and continuing a trend of law-breaking that has been ongoing since 2016.

LPC Chair, Bryan Sanderson, said that "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 Institute of Employment Rights warns that non-compliance with the law is not limited to wage rates. The expectation that individual workers will enforce their own rights has led to a culture in which law breaches often go unidentified, and even when workers are aware of their rights, for the one in ten workers in insecure jobs enforcement carries with it the risk of losing their livelihoods.

In our Manifesto for Labour Law, recommendations from which have been adopted by both Scottish and UK Labour Parties, we propose that a new Independent Labour Inspectorate is established to proactively and reactively identify and respond to breaches of employment law.

Further, stronger trade union rights will help workers to respond collectively to both non-compliance and unfairness in the workplace and better enable disputes to be resolved in-house rather than through recourse to litigation.

Our experts also recommend improved powers for Labour Courts to punish the 50% of employers who ignore court orders to pay compensation to workers whose rights have been breached.

Lastly, penalties must act as effective deterrents as well as properly compensating workers for the losses they have incurred. In the worst cases of law-breaking - such as corporate manslaughter and blacklisting - criminal sanctions should be considered. 

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	Support the IER in its 30th Anniversary year 
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	Govt admits NHS staff need better rights 
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	People from disadvantaged backgrounds twice as likely to be workless adults, study finds 
People who grew up in disadvantaged households are twice as likely to be unemployed between the ages of 18 and 24, even if they have comparable qualifications to their more privileged peers. 
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	Minimum wage non-compliance has been increasing since 2016, LPC says 
The number of workers who are paid below the statutory minimum increased again last year, following a trend of rising non-compliance with the law that has been ongoing since 2016. 
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	Labour promises pay rise and training for social care workers 
The Labour Party has vowed to increase pay, and provide training, for social care workers across the UK. 
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