A recent report from the Trades Union Congress (TUC) has highlighted what they say is an alarming trend affecting UK workers. It shows that a sizeable number are being cheated out of their legally entitled holiday pay.
They report that this has impacted millions of employees and is not only a violation of employment rights but also a reflection of broader problems in workplace practices and enforcement.
The TUC's findings paint a stark picture, they report that over 1.8 million workers in the UK are not receiving their entitled holiday pay, covering both full and part-time employees, and those on zero-hour contracts. Effectively saying that many employers are failing to comply with the law, whether through neglect, misunderstanding, or exploitation. The research estimates that some 1.1 million employees missed out on all of their paid holiday, and 1 in 7 employees are not taking their full entitlement. The total monetary value of this is estimated at over £2.5 billion in unpaid holiday pay.
The TUC research showed that black and minority ethnic staff were disproportionately affected by this issue with more than one and a half times more (6%) being affected, compared to (4%) of white employees. In addition, particular sectors that were most impacted include hospitality, retail, and care work. This included 59,000 waiting staff, 55,000 home carers and 50,000 catering assistants. Unsurprisingly, all industries where low wages and precarious contracts are common. Workers in these sectors often find themselves in vulnerable positions, hesitant to challenge their employers for fear of losing their jobs. Likewise, women and younger workers are particularly susceptible with many being employed in part-time or flexible roles, which can frequently add to confusion or manipulation around their actual holiday entitlements. This confusion was increased in the gig economy with those on zero-hour contracts also being more at risk with their increasingly complicated working arrangements.
The reasons workers are losing out were additionally being reported as
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enforcementUK law clearly states that all workers are entitled to paid holidays, 28 days per year for full-time workers, or 5.6 weeks equivalent. The report criticises both the HMRC and the time taken to resolve employment tribunals for failing to ensure this right is enacted and adequately protect workers.
The TUC's General Secretary, Paul Nowak, called for urgent reforms to strengthen worker protections. "It is scandalous that millions of workers are being denied their legal holiday pay. This is not just about the money workers are owed — it’s about their health and wellbeing. Workers are entitled to time off to rest and recharge, and this is being taken away from them."
The TUC is calling for stronger enforcement mechanisms with better resourced agencies to enforce holiday pay regulations, and a more timely, efficient process for workers to claim unpaid wages. This is being addressed in the Employment Rights Bill that includes the creation of a Fair Work Agency, a body that will have “real teeth and the power to prosecute and fine companies that breach employment law”, according to Angela Raynor, the Deputy Prime Minister.
It has also called for greater transparency from employers, that they should be required to provide clearer, more accessible information on holiday entitlements and pay, ensuring that workers understand their rights.
