Martin Lewis has issued seven reasons why people are receiving underpayments on their wage slip. The BBC Sounds podcast presenter sounded the alarm in the weekly Money Saving Expert newsletter, where he explored reasons for underpayments.
Mr Lewis said unform, tools and safety clothing was a big reason, adding: “If you must buy them, the cost shouldn’t take what you get below the equivalent minimum wage over your pay period (eg, monthly, if paid monthly).”
The 52 year old also said you should be paid for ALL working time. “Including overtime, security checks, handovers, opening up, being on call & more. So if you get less than minimum wage once these hours are factored in, you’re owed,” he said.
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Other reasons could be tips, commission, accommodation costs and not ‘real’ apprenticeships. The Money Saving Expert founder wrote: “Aged 18+ & apprenticeship has no structured training? You may be on the wrong rate.”
He added: “ENSURE YOU GET THE MIN WAGE RISES. It is due to increase in April, plus it should increase on your 18th and 21st birthdays, taking effect in your first full pay period after the change.” Baroness Philippa Stroud, LPC Chair, said: “Too often the low-paid workers we speak with feel powerless and cut adrift from the institutions which exist to protect them. This can cause low-paid workers to put up with poor employment conditions and underpayment for fear of repercussions.
“The all-too-common experience of insecurity and uncertainty over their rights can discourage workers from reporting underpayment or trying to find better jobs. A strategy to end underpayment will begin with restoring low-paid workers’ confidence.
“The Government’s ambitions for the minimum wage should be backed by a similar level of ambition for enforcement. The Fair Work Agency is a unique opportunity to reform labour rights enforcement; and the Employment Rights Bill picks up several relevant recommendations previously made by the LPC. Our report restates the scale of this problem and suggests some fundamental ways the new agency could build confidence in the enforcement system.”