There is a saying that when something is punishable by a fine, it really means “legal, for a price”. Rogue UK employers seem to take this to heart.
A shocking investigation by the Bureau of Investigative Journalism published this month shows the penalty system has barely been enforced: out of more than 4,800 firms fined since 2016, just 109 have actually paid. While the government has levied £9.6m in fines, it has recovered only £95,000 or less than 1%.
Enforcing employment rights in the UK largely falls to workers themselves, who must take their employer to a tribunal. For many, the barriers are steep: costly legal advice, the risks of suing your boss, and delays of up to 18 months before a hearing. Trade unions offer support, but only if you are a member before the dispute. We now know that even workers who persevere often find that victory is hollow, as they wait for payment that never comes.
Under Britain’s Employment Rights Act, there are no rules on wage theft. Section 23 of the 1996 Act is supposed to guarantee that when an employer makes an “unlawful deduction” the tribunal “must order repayment”. Judges can also add compensation “as they think just and equitable”, taking into account the scale of the theft and the employer’s behaviour.
But unlike in other systems where wage theft triggers double or treble damages, the UK regime leaves restitution almost entirely at the tribunal’s discretion. There is no statutory formula, no automatic multiplier. Interest or an “uplift” can be added, but only if the judge decides it’s fair. In effect, bosses caught stealing wages are usually told to give back what they took. Except almost always, they get away without paying a penny.
Matthew Cole 