Workplace misery: new report exposes unfair treatment

Thousands unfairly treated at work

FairEnough

Thousands of Scots face unfair working practices which leave them in desperate and miserable situations, according to new evidence from Citizens Advice Scotland (CAS).

Last year the Scottish CAB service saw 46,540 instances of unfair treatment at work – an increase of 5.5% on the previous year – and already this year the figures look set to be even higher.

Examples include unfair dismissal, non-payment of wages, cancellation of holidays, bullying, racism and denial of sick pay.

Many workers have told CAS they would like to take their case to tribunals but can’t afford to do so.

CAS new report ‘Fair Enough?’ sets out these problems in detail and suggests solutions to make Scotland’s workplaces fairer. It is being sent to Ministers, MPs and MSPs.

Publishing the report, CAS spokesman Rob Gowans said: “In Scotland we like to see ourselves as a generally fair, socially just country. Sadly, the evidence seen by CAB advisers every day tells a different story. We know that many Scots who are unemployed face severe hardship. But many who do have jobs are living on low incomes and also facing extremely unfair conditions at work.

“The evidence we present today is a snapshot of the kind of employment cases we see. Of course it’s important to say that most employers are fair and treat their staff well. But sadly it’s clear that there are many rogue employers in Scotland, and also that the system is in many ways stacked against workers who want to challenge unfairness at work.

“Some of the unfair employment practices we see put workers in difficult, complex and miserable situations. In exposing these today we want to raise awareness of these problems, but also to argue the case for change. All of the problems we identify in this report can be fixed, and we suggest ways of doing that.

“Because Scotland’s workers deserve better. And it is also in the interests of government and society as a whole that fair employment is promoted. Workers in low quality, stressful jobs have poorer general health, and poor daily quality of life than other groups – even those who are unemployed. It is also important to ensure that unscrupulous employers who wilfully undermine their employees’ basic rights do not gain an unfair advantage over fair employers.”

The sort of cases outlined in the report include:

  • People being dismissed in unfair circumstances, including for being off sick, attempting to take holiday, or informed of their dismissal by text message.
  • Employees who were not paid at all by their employers, in one case for six months’ full-time work.
  • Employers who failed to pay their employees’ income tax and national insurance leaving them to pick up the bill; and instances of clients paid considerably below the National Minimum Wage.
  • People who were unfairly denied sick pay when seriously ill
  • Employers refusing to allow employees to take paid holiday
  • Women who were dismissed when they became pregnant
  • Instances of racist and sexist bullying at work
  • Migrant workers who were exploited and made to work excessive hours
  • People who could not afford the fees to pursue an Employment Tribunal claim
  • Cases where a client won their case at an Employment Tribunal, and were awarded several thousand pounds, but their ex-employers managed to avoid paying them any of the money they were due
  • Many of the examples of poorest practice relate to people on zero hours contracts.

The full report: 

Fair Enough Protecting Scotland’s workers from unfair treatment Feb 2015

More low wage employers named and shamed

GMB trade union calls for guilty directors to be barred

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A further 37 employers who failed to pay their workers the National Minimum Wage – including one in Edinburgh – have been named today by Business Minister Jo Swinson.

Between them they owe workers a total of over £177,000 in arrears and have been charged financial penalties totalling over £51,000.

The government has already named 55 employers since the new naming regime came into force in October 2013. They had total arrears of over £139,000 and total penalties of over £60,000. One of the previous offenders was private school Cargilfield in Cramond, who were fined last June for underpaying a member of staff by over £3700.

HM Revenue and Customs’ (HMRC) National Minimum Wage enforcement budget will be increased by a further £3 million in financial year 2015 to 2016 – taking the total to £12.2 million. The extra money will go towards increasing the number of HMRC compliance officers to identify businesses that exploit their workers by paying them below the National Minimum Wage.

Business Minister Jo Swinson said: “Paying less than the minimum wage is illegal, immoral and completely unacceptable. If employers break this law they need to know that we will take tough action by naming, shaming and fining them as well as helping workers recover the hundreds of thousands of pounds in pay owed to them.

“We are also looking at what more we can do to make sure workers are paid fairly in the first place. As well as being publicly named and shamed, employers that fail to pay their workers the National Minimum Wage face penalties of up to £20,000. We are legislating through the Small Business, Enterprise and Employment Bill so that this penalty can be applied to each underpaid worker rather than per employer.”

Employers who are unsure of National Minimum Wage rules can also get free advice via the Pay and Work Rights Helpline on 0800 917 2368.

The 37 employers are:

  • Kings Group LLP, Hertfordshire, neglected to pay £53,808.91 to 53 workers
  • Kings Group Lettings LLP, Hertfordshire, neglected to pay £26,893.43 to 49 workers
  • Chi Yip Group Ltd, Middleton, neglected to pay £15,566.78 to 13 workers
  • Kingsclere Nurseries Ltd trading as Abacus Day Nursery, Newbury, neglected to pay £12,904.19 to 8 workers.
  • Ms Thap Thi Ly trading as Sweet N Sour, Fleetwood, neglected to pay £11,039.14 to 2 workers
  • Michael Kearney trading as Electrical Estimates, Ceredigion, neglected to pay £5,557.91 to 4 workers
  • ABC Early Learning and Childcare Centre UK Ltd, Wolverhampton, neglected to pay £5,329.25 to 68 workers
  • C J Hartley Ltd trading as Headwork, Sheffield, neglected to pay £4,762.64 to 4 workers
  • Mrs Kelly Jayne Lockley trading as Diva Hair Design, Walsall, neglected to pay £4,103.65 to a worker
  • Browncow Tanning Ltd trading as Fake Bake Hair & Beauty Boutique, Glasgow, neglected to pay £3,406.66 to 2 workers
  • J Wood Joiners & Builders Ltd, Edinburgh, neglected to pay £3,373.19 to 4 workers
  • Louise Ross Trading as Luxe Salon, Leeds, neglected to pay £3,368.13 to a worker
  • H&M Hennes & Mauritz UK Ltd, London, neglected to pay £2,604.87 to 540 workers
  • Building Projects Ltd, Dundee, neglected to pay £2,345.85 to 3 workers
  • David A Farrer Ltd, Morecambe, neglected to pay £2,261.00 to a worker
  • Julian’s Hair Salon Ltd, Newbury, neglected to pay £2,131.35 to a worker
  • Motorists Discount Store Ltd trading as TMS Autoparts, Manchester, neglected to pay £2,025.19 to a worker
  • Ms Dawn Platts trading as Level 2 Hair Studio, Barnsley, neglected to pay £1,186.89 to a worker
  • Myers and Family Ltd, Wakefield, neglected to pay £1.598.82 to a worker
  • Welcome Break Holdings Ltd, Newport Pagnell, neglected to pay £1,318.70 to 19 workers
  • Callum Austin Ltd trading as Jason Austin Hairdressers, Kettering, neglected to pay £1,899.66 to 2 workers
  • Mrs Karen Riley Trading as Crave, Preston, neglected to pay £1,179.09 to 7 workers
  • RPM Performance Rally World Ltd, Maldon, neglected to pay £998.71 to a worker
  • Ego Hair & Beauty (Anglia) Ltd, Colchester, neglected to pay £985.55 to a worker
  • Mr Jinit Shah trading as Crystal Financial Solutions, Middlesex, neglected to pay £941.65 to a worker
  • Counted4 Community Interest Company, Sunderland, neglected to pay £930.73 to a worker
  • HAE Automotive Services Ltd, Harrogate (ceased trading), neglected to pay £798.16 to a worker
  • Vision on Digital Ltd, Ossett, neglected to pay £683.86 to a worker
  • Ultimate Care UK Ltd, Ipswich, neglected to pay £613.79 to 7 workers
  • Century Motors (Sheffield) Ltd, Sheffield, neglected to pay £571.72 to a worker
  • Mr D Eastwell & Mr G Brinkler trading as The Salon, Letchworth Garden City, neglected to pay £409.85 to a worker
  • Rumble (Bedworth) Ltd, Nuneaton, neglected to pay £404.41 to a worker
  • Shannons Ltd, Worthing neglected to pay £313.76 to a worker
  • Holmes Cleaning Company, Worksop neglected to pay £240.48 to a worker
  • Learnplay Foundation Ltd, West Bromwich, neglected to pay £224.73 to a worker
  • Adrien Mackenzie trading as Maverick Models, Manchester, neglected to pay £205.52 to a worker
  • QW Security Ltd, Hartlepool, neglected to pay £126.20 to a worker

The 37 cases named today were thoroughly investigated by HM Revenue and Customs after workers made complaints to the free and confidential Pay and Work Rights Helpline.

The scheme was revised in October 2013 to make it simpler to name and shame employers that do not comply with minimum wage rules, but the GMB trade union  says the enforcement rules should also be changed so that trade unions can make complaints to HMRC on behalf of members.

Commenting on the latest announcement Martin Smith, GMB National Organizer, said: “Far too few wage-dodging employers not paying the national minimum wage have been bought to justice. Government needs to make a real commitment to making work pay by more aggressively seeking out offenders to prosecute them. The enforcement rules should also be changed so that trade unions can make complaints to HMRC on behalf of members.

“As part of the public disgracing for the firms named GMB is calling for the directors of these companies to be placed on a “wage offenders register” at Companies House and be deemed an unfit person to hold any further directorships.

“There needs to be a recognition that a national minimum wage of £6.50 is near impossible to live on as it is without relying on state benefits. There are bucket loads of evidence that an uplift of at least 50p per hour would help the low paid and start to stimulate the economy and that all the big firms including the retailers can afford it.

“There is no justification for the national minimum wage not keeping up with inflation. The Low Pay Commission should recommend a rate of at least £7 per hour from October 2014 to make up the ground lost since 2006.

“It is time for the Low Pay Commission to do what it says on the tin – fight for the low paid.”

New minimum wage rates come into force today

moneyOver one million of Britain’s lowest-paid workers are set to benefit as new National Minimum Wage (NMW) rates come into force from today.

The rate rise to £6.50 per hour, the first real terms cash increase since 2008, follows the recommendations from the independent Low Pay Commission (LPC) in March this year and the call for faster, affordable rate rises by Business Secretary Vince Cable.

The National Minimum Wage rates from 1 October 2014, as recommended by the LPC, are:

  • a 19p (3%) increase in the adult rate (from £6.31 to £6.50 per hour)
  • a 10p (2%) increase in the rate for 18 to 20-year-olds (from £5.03 to £5.13 per hour)
  • a 7p (2%) increase in the rate for 16 to 17-year-olds (from £3.72 to £3.79 per hour)
  • a 5p (2%) increase in the rate for apprentices (from £2.68 to £2.73 per hour)

The rate rise will mean more than 1 million people are set to see their pay rise by as much as £355 a year.

Business Secretary Vince Cable said: “The National Minimum Wage provides a vital safety net for the lowest paid, ensuring they get a fair wage whilst not costing jobs. This year’s rise will mean that they will enjoy the biggest cash increase in their take home pay since the banking crisis, benefiting over 1 million people in total.

“I believe it is vital that the Low Pay Commission’s recommendations – not political considerations – should set national minimum wage rates. As signs of a stronger economy start to emerge, we need to do more to make sure that the benefits of growth are shared fairly across the board. The Low Pay Commission will continue to advise government on future wage rises and ensure the minimum wage keeps pace with inflation.”

Earlier this year the Business Secretary asked the LPC to extend its expertise to help government and business understand how we can deal with the issue of low wages in the economy. In particular, he asked it to look at what economic conditions would be needed to allow the National Minimum Wage to rise in the future by more than current conditions allow, and restore its real value.

The Business Secretary welcomed the LPC’s assessment that 2014 will mark the start of a new phase of bigger increases, provided economic conditions continue to improve. It is the first time the government has been provided with a broader evaluation of the issues that affect low pay.

Paying any less than the minimum wage is illegal. If employers break the law the government will take tough action, including enforcing steep financial penalties and publicly naming flouters.

Anyone who feels they are being exploited should contact the free and confidential Pay and Work Rights Helpline on 0800 917 2368.

Exclusive Edinburgh prep school named and shamed

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Cargilfield fails to pay minimum wage

Employers who owe their workers thousands of pounds for failing to pay them the correct National Minimum Wage have been named and shamed. Among them is exclusive Edinburgh prep school Cargilfield, who underpaid a worker by over £3,700.

Today (8 June 2014), a further 25 employers who failed to pay their employees the minimum wage have been named under the new regime introduced last October, which makes it easier to name and shame wrongdoers. Between them they owe workers more than £43,000 in arrears and in addition have to pay financial penalties totalling over £21,000.

Business Minister Jenny Willott said: “Paying less than the minimum wage is not only wrong, it’s illegal. If employers break the law they need to know that they will face tough consequences.

“Any worker who is entitled to the minimum wage should receive it. If anyone suspects they are not being paid the wage they are legally entitled to they should call the Pay and Work Rights helpline on 0800 917 2368”.

The government has introduced a series of tougher measures to crack down on employers that break National Minimum Wage law. As well as being publicly named and shamed, employers that fail to pay their workers the National Minimum Wage also face new penalties of up to £20,000 – 4 times higher than before.

The government also plans to legislate in the new parliamentary session so that employers can also be given penalties of up to £20,000 for each individual worker they have underpaid, rather than the maximum penalty applying to each employer. This will mean if an employer underpays 10 workers, they could face penalties of up to £200,000.

The 25 employers are:

  • Christine Cadden and Nicola Banks of Renaissance, Wirral, neglected to pay £7,310.65 to 3 workers
  • Alan King and John King of Arthur Simpson & Co, Bradford, neglected to pay £6,426.12 to a worker
  • Central Heating Services Ltd, Hampshire, neglected to pay £6,200.28 to 4 workers
  • Cargilfield School Ltd, Edinburgh, neglected to pay £3,739.58 to a worker
  • A2ZEE Construction Ltd, Cramlington, neglected to pay £3,375.51 to 14 workers
  • Mr and Mrs Balasco of Eugenio, Bristol, neglected to pay £3,037.53 to 2 workers
  • Mr and Mrs Hampton of The Wheatsheaf Inn, Cheshire, neglected to pay £2,057.88 to 4 workers
  • Steven Stainton of Steven Stainton Joinery, Cumbria, neglected to pay £1,415.82 to a worker
  • Runbaro Ltd, Swindon, neglected to pay £1,413.88 to a worker
  • Satwinder Singh Khatter and Tejinder Singh Khatter of The Bath Hotel, Reading, neglected to pay £1,237.79 to 2 workers
  • Richard Last of Classic Carpentry, Godalming, neglected to pay £1,236.72 to a worker
  • We are Mop! Ltd, London, neglected to pay £1,018.05 to 2 workers
  • Mrs Sue English of Legends Hairdressers, Colchester, neglected to pay £823.40 to a worker
  • Saftdwin Ltd, Hampshire, neglected to pay £806.37 to 2 workers
  • Master Distribution Ltd, Essex, neglected to pay £718.62 to a worker
  • Perth Hotels Ltd, Perth, neglected to pay £556.80 to a worker
  • Bryants Nurseries Ltd, Hertfordshire, neglected to pay £494.07 to a worker
  • Dove Mill Retail Outlet Ltd, Bolton, neglected to pay £461.84 to a worker
  • Luigi’s Little Italy Ltd, Yorkshire, neglected to pay £281.04 to 5 workers
  • CPS SW Ltd, Exmouth, neglected to pay £261.29 to a worker
  • Mr Gary Calder, Mr Richard Calder and Mr Neil Calder of Avenue Agricultural, Northamptonshire, neglected to pay £256.55 to a worker
  • Dakal Ltd, Northampton, neglected to pay £252.00 to 2 workers
  • Zoom Ltd, Havant, neglected to pay £242.28 to 3 workers
  • HSS Hire Service Group Ltd, Manchester, neglected to pay £149.00 to 15 workers
  • Sun Shack Ltd, Hamilton, neglected to pay £134.35 to 8 workers

The 25 cases named today were thoroughly investigated by HM Revenue & Customs after workers made complaints to the free and confidential Pay and Work Rights helpline.

Employers who are unsure of National Minimum Wage rules can also get free advice and information from the Pay and Work Rights Helpline on 0800 917 2368 or by visiting www.gov.uk.

Cargilfield, founded in 1873, was the first prep school to be established in Scotland. It moved from Trinity in Edinburgh to its current location in Barnton in 1898. A Pre-prep and Nursery Department were added to the prep school campus during the early 1980’s in response to the changing nature of the parental body and the introduction of girls.

School fees range from £1665 per term for nursery children up to almost £6000 per term for Upper School boarding pupils.

The school’s website says: ‘The school was founded by the Reverend Charles Darnell, who’s aim was “to provide a liberal education and teach the merits of hard work and honesty under conditions of happiness and well-being”. This remains at the core of our ethos today’.

Call for ‘living wage’ if Scotland says ‘YES’

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An expert group on welfare set up by the Scottish government has recommended a substantial rise in the minimum wage. It said the rate received by the lowest paid should go up by more than £1 per hour if Scotland votes for independence.

The recommendation from the Scottish government’s advisory group was that the minimum wage should match the ‘living wage’ within five years of independence – a rise from £6.31 to £7.65 per hour.

Responding to the latest report, Deputy First Minister Nicola Sturgeon said support to get people into work, action to make work pay and the provision of a strong and decent safety net for those who are unable to work should be the focus of the welfare system in an independent Scotland.

The independent Expert Working Group on Welfare’s second report outlines a vision for a fairer, simpler and more personal welfare system and provides nearly 40 recommendations for change following independence.

The Deputy First Minister confirmed that in an independent Scotland the current government would take forward recommendations, including those to improve support for carers, restore the link between benefits, tax credits and the cost of living and abolish the current Work Capability Assessment.

She also confirmed that the Scottish Government would carefully consider the Group’s recommendations on the minimum and living wage, introduction of a new Social Security Allowance and replacement of the Work Programme with more targeted support to help people find and sustain employment.

Ms Sturgeon said: “I warmly welcome the independent Expert Working Group’s report and thank the members for their significant contribution. The Group’s report includes a wide ranging package of recommendations which would help us create a welfare system in an independent Scotland that better meets our needs.

“As part of their discussions, the Group have engaged with a wide range of people and organisations. It is clear they have listened closely not only to how people feel about welfare, but also how the current reforms are affecting their lives.

“In particular, I strongly endorse the Group’s view that the welfare system should act as a strong safety net and a springboard to a better life. They are right when they say that work should be the best route out of poverty for most people but that the rise in in-work poverty needs to be addressed if this is to be the reality.

“Following a vote for independence, we would be committed to taking on several recommendations straight away to deal with those aspects of the current system that are pushing so many people into poverty.”

The Government would:

• Increase Carers’ Allowance to £72.40 per week, the same rate as Jobseeker’s Allowance for those aged 25 or over. This would amount to an extra £575 a year for the 102,000 people in Scotland who are eligible to claim the allowance.

• Re-establish the link between benefits and the cost of living, with benefits and tax credits being increased each year by the Consumer Prices Index of inflation.

• Abolish the ‘Bedroom Tax’.

• Replace the current system of sanctions with one that is fairer, more personalised and positive.

• Abolish the current Work Capability Assessment that determines the ability to work of the sick and disabled.

• Establish a National Convention on Social Security at the start of 2015.

The Government will also carefully consider the Group’s other recommendations. These include:

• Increasing the National Minimum Wage to equal the Living Wage and with reductions in Employers’ National Insurance contributions to help businesses make this transition.

• Replacement of the Work Programme with new initiatives developed in partnership with those out of work to help them find, and stay in, employment.

• Introducing a new Social Security Allowance that would bring together existing benefits but which would exclude Housing Benefit.

• Better supporting those with long-term disabilities and illness into work.

The Deputy First Minister added: “We are committed to mitigating the harmful effects of Westminster’s welfare reforms where we can, such as securing the transfer of powers over discretionary housing payments to the Scottish Government, allowing us to help people struggling with the Bedroom Tax.

“The report recognises the increased pressures of in work poverty and some of the difficulties in the current labour market. These are challenges all countries face but we are committed to tackling them head on wherever possible. The growing numbers of people in work but still facing poverty is extremely worrying. They need our support and one way to do this, as the Group suggests, would be through making the Living Wage the National Minimum Wage. We will be looking closely at this proposal.

“We will be considering the Group’s recommendations to replace the Work Programme with more innovative, locally-based schemes, designed to help people find jobs and, importantly, stay in work.

“We will also look at the introduction of a new Social Security Allowance, but would keep Housing Benefit separate from this.

“Our focus will be on prevention rather than dealing with existing symptoms, to develop a society that not only provides fair support and decent opportunities for all but also protects the vulnerable in our society. The only way to guarantee that is to have the powers to deliver progressive reform of the Welfare State – only with independence will we have the opportunity to create a welfare system that is fairer and works for all the people of Scotland.”

However Scottish Lib Dem leader Willie Rennie said people who expected big changes to welfare after independence would be “disappointed” by the report, while Labour maintains that being part of the bigger UK economy offers greater financial security. Scottish Labour’s Jackie Baillie said: “Once again we have uncosted promises from the SNP. You can’t have more generous welfare at the same time as you are cutting taxes – it simply doesn’t add up”.