No Result
View All Result
Benefits Expert
  • About
  • Advertise
  • Alerts
  • Events
  • Contact
  • NEWS
  • IN DEPTH
  • PROFILE
  • PENSIONS
  • GLOBAL REWARDS
  • FINANCIAL BENEFITS
  • HEALTH & WELLBEING
  • DIVERSITY & INCLUSION
No Result
View All Result
Benefits Expert
  • NEWS
  • IN DEPTH
  • PROFILE
  • PENSIONS
  • GLOBAL REWARDS
  • FINANCIAL BENEFITS
  • HEALTH & WELLBEING
  • DIVERSITY & INCLUSION

LPC reports raises minimum wage compliance concerns

by Benefits Expert
15/09/2023
Minimum wage rise not enough, says TUC
Share on LinkedInShare on Twitter

Very few workers paid below the national minimum wage (NMW) take their cases to the Low Pay Commission (LPC) despite “abundant evidence and anecdote” suggesting underpayment takes place on a “considerable scale”, the enforcement body has found.

According to a newly published report by the LPC examining compliance and enforcement of the NMW, workers who remain with the same employer year-to-year are more likely to remain underpaid. The study found that around one in three underpaid workers were still underpaid the following year, and the LPC cited changing jobs as the “surest way to escape underpayment”.

However, the body found “too many factors continue to create constraints” for low-paid workers who wish to exercise their mobility and challenge exploitative employers.

Even though the labour market has tightened since the pandemic and vacancies rose to record levels, the obstacles to changing jobs “continue to weigh heavy in the minds of low-paid workers we speak to”, the LPC said.

The enforcement body found that the prevalence of insecure work makes job moves feel risky, while insecure employment leaves workers in a position of greater dependency on their employers and creates conditions ripe for exploitation. This wariness surrounding moving jobs could be exacerbating employers’ recruitment difficulties, the LPC added.

RELATED POSTS

older pension savers, drop, funds, retirement

DC contributions continue falling despite £39bn employer investment

AI

AI in use by half of HR workers, study shows

Later this year, the LPC will present evidence to the government to help decide what should happen with the National Living Wage after 2024, with the body hoping the rate will reach its target of two-thirds of median earnings.

Bryan Sanderson, chair of the LPC, said: “We are entering a crucial period for the national minimum wage, with major decisions impending over the policy’s future trajectory.”

He added: “It is important to remind ourselves that the minimum wage is only truly effective in protecting living standards if it is enforced. This is a necessity not only for the employees but to ensure that the great majority of employers who are managing through difficult times are protected from unfair competition.”

 

Next Post
employers, urged, offer, help, families, research, revealed, suffer, financially, paternity leave, family

Family first: Recognising the priorities of employees with dependants

menopause friendly employers

Louise Minchin tells menopause-friendly employers to keep foot on the pedal 

Guide to DC Pensions 2023



CLICK TO REQUEST A FREE COPY

OPINION

employment, Emma OConnor, holiday requests

The rise of AI use – considerations for employers and HR?

Paul Beare

Paul Beare: Embracing flexible working post-Covid

Rob Woodward BDO

Rob Woodward: Agency workers and legislation targeting umbrella companies

Clare Worgan Sands

Clare Worgan: Supporting employees affected by baby loss

SUBSCRIBE

Benefits Expert

© 2023 Definite Article Limited. Design by Bedazzled Media Limited.

  • About
  • Advertise
  • Privacy Policy
  • Terms & Conditions
  • Contact

Follow Benefits Expert

No Result
View All Result
  • News
  • In depth
  • Profile
  • Pensions
  • Global rewards
  • Financial benefits
  • Health & wellbeing
  • Diversity & Inclusion