Around one in 20 UK workers say they are not receiving any paid holiday allowance, a violation that costs Britain’s workforce as much in lost pay as illegally low wages, according to new analysis by the Resolution Foundation.
The analysis, based on official surveys, looks into breaches of the law that requires all workers except the self-employed to be given 28 days of paid leave a year, which can include the eight annual bank holidays. The 5 per cent share of short-changed workers is equivalent to about 1.5 million people.
A government report last year noted that there is effectively no state agency enforcing holiday pay regulations and cited evidence suggesting that the unpaid amount is equal to losses from violations of minimum wage rules.
Lindsay Judge, senior economic analyst at the Resolution Foundation, said: “The UK has a multitude of rules to govern its labour market – from maximum hours to minimum pay. But these rules can only become a reality if they are properly enforced.
“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.”