low-paid workers don’t report being underpaid because of fear and insecurity, a new report warns.
The Low Pay Commission (LPC) said the abuse reporting process doesn’t work for the most vulnerable workers.
It examined non-compliance and minimum wage enforcement in Leicester’s textile industry and stated that since 2020 multiple agencies have conducted large-scale joint enforcement operations in the area, partly in response to reports of exploitation and underpayment.
Enforcement agencies find relatively modest non-compliance in Leicesterwhile commissioners spoke to other agencies and individuals who believed noncompliance was “widespread and egregious,” the report said.
LPC chairman Bryan Sanderson said: “The evidence we heard from workers in Leicester was striking.
“Despite some positive recent progress, job insecurity, a toxic workplace culture and low expectations leave workers trapped in poor quality jobs and vulnerable to exploitation.
“The same factors make them unlikely to report abuses, undermining efforts to enforce workers’ rights.
“Leicester’s case is not unique. In the UK, workers in precarious positions face the same obstacles, with the same enforcement implications.
“The problem requires extensive action, including to give these employees more certainty about their hours and income.”
The commission said the abuse reporting process does not work for the most vulnerable low-paid workers, and fails to engage outside agencies that workers may trust more.