As the Trades Union Congress (TUC) opens its 146th annual Congress today, a new report has uncovered a widespread issue of UK workers being deprived of an estimated £2 billion in holiday pay. The study highlights that 1.1 million employees, or one in 25, were denied their legally entitled 28 days of paid leave last year, leading to an average financial loss of £1,800 per affected worker.
The report, which emphasizes a growing problem of withheld holiday pay, sheds light on how employers are exploiting workers, particularly those in low-paid sectors such as hospitality and care. Black and minority ethnic (BME) workers were disproportionately affected, with 6% receiving no paid leave compared to 4% of white employees. The report also noted that low-wage workers, often in industries like retail and healthcare, were among the hardest hit.
TUC General Secretary Paul Nowak commented, “We all deserve a break from work to spend time off with our friends and family. But more than a million working people have been deprived of any of the paid leave they are due.” Nowak also emphasized the role of workplace cultures that discourage leave requests, unrealistic workloads, and the deliberate denial of holiday requests as factors in this growing issue. The TUC also pointed to a lack of legal awareness among both employees and employers as exacerbating the problem.
In response, the TUC is calling for stronger enforcement of workers’ rights and is launching a five-point plan to tackle the issue. The plan aligns with the Labour government’s pledge to introduce a Fair Work Agency, designed to ensure that employment rights are respected and upheld across the UK. The agency would be responsible for tackling bad employment practices and consolidating existing enforcement bodies under one roof.
Polling commissioned by the TUC reveals strong public backing for the proposed Fair Work Agency, with 61% of voters in favour of its introduction. Nowak criticized the previous Conservative government’s focus on austerity measures and cutting back enforcement, arguing that workers have suffered as a result. “Now it’s time to reset the dial and end the Tories’ race to the bottom,” Nowak said, advocating for a fairer system where workers’ rights are properly enforced.
As the TUC Congress gets underway, debates over improving workplace standards are expected to take centre stage, with the proposed Employment Rights Bill and the Fair Work Agency at the forefront of discussions. The TUC continues to urge the government to act swiftly to protect workers and ensure that employers comply with legal requirements regarding holiday pay and other rights.
This issue has further underscored the urgent need for reform in employment rights enforcement, particularly as workers across various sectors continue to be deprived of their rightful benefits.