A report by the UK’s Low Pay Commission has revealed that the "taboo" around reporting abuses is a major barrier to enforcing the legal minimum, BBC News reports.
The report is centred on the garment industry in Leicester, which has a history of underpaying workers. However, the findings are said to apply to all efforts to improve the conditions of low-paid workers across the UK.
The Low Pay Commission report details how "employers have instilled fear in their workers" with intimidation and harassment in the workplace.
One worker told the auditors working with the commission that if enforcement bodies came to the factory their boss would act on any suspicions about who had complained and fire the person immediately.
Workers were told their P45 could be withheld or "marked" in such a way that they would never work again if it was thought they were causing trouble.
Supply chain auditors with experience in collecting worker testimony said "the fear of retribution is … very real among these workers, to the point where they will sit and shake in meetings or hold your hand as they're talking to you".
One worker had reportedly experienced factory owners and managers coaching workers on how to respond to questions from enforcement bodies.
Low Pay Commission 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.
"The problem demands comprehensive action, including to give these workers greater security over their hours and incomes."
A separate inquiry by the Equality and Human Rights Commission (EHRC) found that lower-paid ethnic minority health and social care workers are particularly fearful of raising concerns in the workplace, out of fear that they may lose their jobs.
Workers believed they would not be listened to or protected, or that their rights would not be upheld with some experiencing bullying, harassment and abuse related to their race.
Ethnic minority staff generally have worse employment outcomes than their white peers, the EHRC inquiry found.
The Low Pay Commission - a government agency which recommends the level for the minimum wage - is calling on ministers to end "one-sided flexibility". It defines this as "a requirement to be available for work at very short notice, without any guarantee that work will actually be available".
Such employment insecurity can make managing finances, or securing a mortgage, difficult and can feel unfair "especially when the reality of the working arrangement is that the individual regularly works 40 hours a week".
The commission's report found that the process for reporting abuses does not work for the most vulnerable low-paid workers and has recommended that HMRC should address this issue.
Anyone can report an employer to HMRC for not paying the minimum wage and the initial report can be anonymous.
The maximum employer fine for non-payment is £20,000 per worker. Employers who fail to pay can be publicly named and banned from being a company director for up to 15 years.
Source: BBC News
(Links and quotes via original reporting)
A report by the UK’s Low Pay Commission has revealed that the "taboo" around reporting abuses is a major barrier to enforcing the legal minimum, BBC News reports.
The report is centred on the garment industry in Leicester, which has a history of underpaying workers. However, the findings are said to apply to all efforts to improve the conditions of low-paid workers across the UK.
The Low Pay Commission report details how "employers have instilled fear in their workers" with intimidation and harassment in the workplace.
One worker told the auditors working with the commission that if enforcement bodies came to the factory their boss would act on any suspicions about who had complained and fire the person immediately.
Workers were told their P45 could be withheld or "marked" in such a way that they would never work again if it was thought they were causing trouble.
Supply chain auditors with experience in collecting worker testimony said "the fear of retribution is … very real among these workers, to the point where they will sit and shake in meetings or hold your hand as they're talking to you".
One worker had reportedly experienced factory owners and managers coaching workers on how to respond to questions from enforcement bodies.
Low Pay Commission 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.
"The problem demands comprehensive action, including to give these workers greater security over their hours and incomes."
A separate inquiry by the Equality and Human Rights Commission (EHRC) found that lower-paid ethnic minority health and social care workers are particularly fearful of raising concerns in the workplace, out of fear that they may lose their jobs.
Workers believed they would not be listened to or protected, or that their rights would not be upheld with some experiencing bullying, harassment and abuse related to their race.
Ethnic minority staff generally have worse employment outcomes than their white peers, the EHRC inquiry found.
The Low Pay Commission - a government agency which recommends the level for the minimum wage - is calling on ministers to end "one-sided flexibility". It defines this as "a requirement to be available for work at very short notice, without any guarantee that work will actually be available".
Such employment insecurity can make managing finances, or securing a mortgage, difficult and can feel unfair "especially when the reality of the working arrangement is that the individual regularly works 40 hours a week".
The commission's report found that the process for reporting abuses does not work for the most vulnerable low-paid workers and has recommended that HMRC should address this issue.
Anyone can report an employer to HMRC for not paying the minimum wage and the initial report can be anonymous.
The maximum employer fine for non-payment is £20,000 per worker. Employers who fail to pay can be publicly named and banned from being a company director for up to 15 years.
Source: BBC News
(Links and quotes via original reporting)