Director of Labour Market sets out recommendations to tackle exploitation of the low paid

The independent report from Sir David Metcalf comes as new HMRC stats show that its enforcement teams have doubled the number of underpaid workers they have recouped money for to 200,000 in 2017.

Metcalf’s strategy includes bigger financial penalties for employers who exploit workers, enforcing holiday pay and making employers provide a statement of rights for employees and a payslip for all workers.

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The recommendations also include making leading brands jointly responsible for non-compliance in their supply chains. This would be done in private but with apublic naming of the brand and supplier for failure to correct non-compliance.

In addition, it suggests that more resources are given to the Employment Agency Standards Inspectorate to enforce current regulations and to expand its remit to cover umbrella companies and intermediaries

There is also the idea of the local or regional piloting licencing of hand car washes and nail bars, which have been identified as sectors at risk of labour exploitation.

Metcalf said: “This strategy sets out how we can toughen up enforcement activity…