Growth of UK employees with unpaid wages

David Cameron employment

David Cameron employmentBritish employers owe their workers wages amounting to 68 million GBP (98 million USD) since 1999, according to the British National Audit Office. The number of affected employees with unpaid wages has doubled – from 26,000 in 2014 to 58,000 in 2015. The sector of social care is the biggest problem, according to Audit Office, as 11% of workers can not be paid the minimum wage. In April, the minimum wage in the UK rose to 7.20 GBP per hour.

Over the last six years the tax office of UK have had fines on companies at a rate of 5.6 million GBP for non-compliance to employers.

Meanwhile, the British employers’ prefer hiring workers on temporary contracts, instead of permanent, as nerves around the upcoming European Union referendum dissuaded them from taking on permanent staff. The temporary contracts in UK grew by fastest pace since March 2015. The Recruitment and Employment Confederation’s monthly report added to evidence that British companies are delaying investment plans in the run-up to the June 23 vote on Brexit. Moreover, the pay for temporary staff increased at the strongest rate since July 2007, which recruitment firms linked to the introduction of a new minimum wage for those aged 25 and over. But pay growth for permanent staff eased to a three-month low.

About the Author

Viliyana Filipova
My name is Viliyana Filipova and I’m working as content writer and analyst of Business News Feeds Journal. I'm writing about finance statements, business analyze and employment for Central and Eastern Europe, Russia and Middle East.

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