New analysis published today (Monday) by the Resolution Foundation has uncovered the extent of unlawful working practises across the UK, and shows that workers in the hotels and restaurants sector are the most likely to miss out on minimum legal workplace entitlements.

Around one in seven workers in the sector report receiving no holiday entitlement, three times the rate across the rest of the economy, while around one in seven do not receive a pay slip (a rate 50 per cent higher than the rest of the labour market).

The analysis also finds that workers in small firms (employing fewer than 25 employees) are most likely to miss out on pay slips and holiday leave, as are workers on zero-hours and temporary contracts.

The government has taken welcome steps to increase both the resources and powers of bodies such as HMRC and the GLAA (Gangmasters and Labour Abuse Agency) in recent years. However, the UK still largely relies on individuals to hold non-compliant firms to account, with the Employment Tribunal (ET) system receiving over 100,000 applications last year.

Lindsay Judge, Senior Economic Analyst at the Resolution Foundation, said, “The government’s welcome proposal to create a new single enforcement agency should leave it better placed to tackle these labour market violations than the multiple bodies currently operating, as long as it’s properly empowered and resourced.

“Our analysis suggests that while violations take place across the labour market, the government should also prioritise investigations into sectors like hotels and restaurants, along with firms who make large use of atypical employment contracts, as that’s where abuse is most prevalent.”

(source: Resolution Foundation, image: pexels)