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High Street

One in 20 workers not receiving holiday pay, research reveals

Around one in 20 workers in the UK are not receiving any holiday entitlement, according to a recent study by think tank the Resolution Foundation.

The report found that 4% of workers in the wholesale, retail and motor services sector say they have no paid holiday entitlement, amounting to approximately 100,000 workers in the sector.

In addition, 10% say they do not receive a payslip, which equates to approximately 350,000 workers in the sector.

The analysis is part of the think tanks investigation into labour market enforcement, supported by Unbound Philanthropy, uncovering the extent of “unlawful” working practises across the UK, and identifies where “abuse” is most common.

HMRC identified a record 200,000 cases of workers not receiving the minimum wage as a result of its enforcement work last year, with the Foundation’s analysis finding that at least a quarter of those earning within 5p of the minimum wage are paid less than the legal minimum.

Workers aged under 25 and over 65 are the most likely not to receive a payslip, according to the research. Around one in six workers aged 65+ report they have no paid holiday entitlement, more than any other age group, while workers aged 25 and under are almost twice as likely be underpaid the minimum wage as any other age group.

It also found that workers in small firms are most likely to miss out on pay slips and holiday leave, as are workers on zero-hours and temporary contracts.

Lindsay Judge, senior economic analyst at the Resolution Foundation, said: “Labour market violations remain far too common, with millions of workers missing out on basic entitlements to a pay slip, holiday entitlement and the minimum wage.

“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.”

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