Skip navigation | Skip to footer
 

Rooting out the Rogues

19 December 2007

Fair Employment Commission needed to root out rogue employers says Citizens Advice and Citizens Advice Scotland

A joint report out today from Citizens Advice and Citizens Advice Scotland warns that tens of thousands of the most vulnerable workers in the UK are being exploited by rogue employers. Showing how gaps in the current system are allowing unscrupulous employers to act with near impunity, Rooting out the Rogues is calling for a ‘fair employment commission’ with the legal powers and resources to secure individual workers their rights and bring bad employers to account.

Both charities are also warning that exploitative practices such as non payment of tax and national insurance are putting good employers at a competitive disadvantage in the marketplace, forcing some to cut corners or risk going out of business, potentially triggering a downward spiral of wages, conditions and even workplace safety.

Last year, Citizens Advice Bureaux across the UK dealt with over half a million employment related matters. Of these it is estimated that 60% are cases where statutory workplace rights have been denied, such as the statutory right to four weeks paid holiday per year, denial of statutory sick leave and pay, and the reduction of (often already low) wages to illegal levels by excessive deductions for accommodation, transport and other ‘services’. Workers may also be required to work excessively long hours or are denied proper rest breaks, be summarily dismissed simply for being pregnant or not receive wages owed after leaving employment.

Those most at risk include pregnant women, migrant workers and those who – on account of their age, disability or lack of skills– face the greatest challenge in finding alternative employment.

Rooting out the Rogues highlights how the combined remit of the four statutory bodies* currently tasked with enforcing workers’ rights is far from comprehensive leaving many workers and issues unprotected. It adds that there is little personal incentive for those who are covered to make a complaint, especially where successful action could result in their employer losing their licence and the employee their job.

In addition, Citizens Advice and Citizens Advice Scotland find that the Employment Tribunal system, the only option left for many after raising a formal grievance, is also letting vulnerable workers down. Not only is the cost of legal representation likely to be prohibitive, but the charities’ evidence shows that the process can be daunting and stressful. Even those who are successful and win a monetary award are not guaranteed to ever see the money, or see their employer held to account.

Citizens Advice Chief Executive David Harker said:

"While the vast majority of employers try hard to meet their legal obligations, our evidence shows that there are still far too many rogues out there, flouting the law, ignoring rules without sanction and profiting from vulnerable workers.


"We welcome the UK Government’s increasing recognition of the problems caused by rogue employers and the difficulties faced by the most vulnerable workers, but much more still needs to be done. Tens of thousands of workers in the UK economy are currently failing to benefit from the UK Government’s very welcome policy programme, revealing a real need for a ‘fair employment commission’ to give exploited workers somewhere to turn, give employers a level playing field, and root out the rogue employers."

Case studies

Tomasina, a young Polish woman in Manchester, has been employed as a night cleaner by a London-based contract cleaning company for the past 18 months, working seven nights per week.  She has not had any paid holiday during this time, and when she recently asked her manager about this he falsely stated that she has no legal right to paid holiday.  Tomasina fears that, if she “makes a fuss”, she will be sacked, as she has seen happen to fellow workers who complained.

Donna, a lone parent of three teenage children living in the West of Scotland, works 15 hours per week and is paid £5.00 per hour – below the National Minimum Wage of £5.52 per hour.  However, even after being advised of her rights, she is too fearful of losing her job to complain to her employer.

A CAB in Kent reports being approached by a married couple, joint owner/managers of a small contract cleaning company.  The couple’s company had recently lost a number of contracts to competitors they knew to be paying illegally low wages (i.e. less than the National Minimum Wage) to migrant workers, and turn over is now so low that there is no profit to cover the couple’s basic needs.  The bureau reports the couple being in “great distress due to the looming loss of their business, their accumulating debts and their sense of unfairness”.

Rooting out the Rogues

Notes to editors

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see New windowwww.adviceguide.org.uk
  3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2010 to March 2011. For full 2010/2011 service statistics see: www.citizensadvice.org.uk/press_statistics
  4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.