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27/02/2017
An estimated £1.2 billion in wages, and a further £1.5 billion of holiday pay, remains unpaid each year as a result of breaches of employment rights, according to an interim report of research carried out at Middlesex University since September 2015. Official data suggests widespread breaches of employment rights, for example, one in 12 workers does not receive a payslip and one in 20 reports that they have not received holiday pay.
Some types of unpaid wages occur repeatedly, including failures to provide holiday pay, unpaid hours or unauthorised deductions from wages. Sectors most likely to be involved in unpaid wages are ‘sports activities, amusement and recreation’, ‘food and beverage services’ and ‘arts and entertainment’. According to the researchers, failing to pay wages is no barrier to the continuation of businesses as there is a widespread culture of repeated non-compliance with employment rights, often sheltered behind limited liability status.