An estimated 342,000 jobs were paid below the National Living Wage in 2017. Total unpaid wages amounted to £3.1 billion in 2016.
This is according to the May 2018 report (pdf) on enforcement of employment rights by the government’s Director of Labour Market Enforcement.
This strategy document sets out recommendations to improve state-led enforcement of employment rights, including measures to be taken by the 3 labour market enforcement bodies:
- Gangmasters and Labour Abuse Authority (GLAA)
- Employment Agency Standards Inspectorate (EAS)
- HMRC National Minimum Wage and National Living Wage team (HMRC NMW)
It notes gaps in enforcement to be addressed, e.g. making the HMRC responsible for enforcing holiday pay regulations, as no state body is currently responsible for this.
The report also discusses supporting employers to be compliant with employment law, promoting workers rights and increasing access to enforcement.
‘Profound changes have occurred in the labour market. Hand-in-hand with such changes came the realisation that labour market laws and regulations are not being fully enforced.’
– Sir David Metcalf, Director of Labour Market Enforcement