Holiday Pay for hospitality staff – Employers beware!
Shockingly, a recent study claims that 1 in 7 workers in the UK say they don’t get any holiday pay or even holidays in some cases.
The Resolution Foundation, an independent think-tank focused on improving the living standards for those on low to middle income, said their research has found millions of workers are not receiving legally required basics like the national minimum wage, holiday or even payslips.
1 in 20 workers are affected. However, it is staff in the hospitality sector who are the worst affected.
They estimate almost 50% of workers in hotels and restaurants don’t even receive a payslip while 45% are on zero-hours contracts and 40% of workers on temporary contracts said their contracts included no paid holiday regardless of how long they were being employed for.
Obviously, nobody wants to read statistics like this. The key message is that hotel, bar and restaurant managers, owners and operators need to know is the Government is actively addressing this issue.
HMRC have been given extra funding and power to tackle exploitation. Currently £33m a year is being spent on enforcing employment rights. The Government has publicly underlined their commitment to work harder to ensure vulnerable workers receive the holiday pay rights they are entitled to.
The net is closing around those in the hospitality industry who don’t comply with their legal obligations. That could well include hotel, bar and restaurant managers who are simply not aware of the legal minimum. The less scrupulous operators who are actively side-stepping their legal responsibilities are also included here.
If you are own or operate a bar, restaurant or hotel and would like to make sure you are fully compliant with current employment law, please email Lauren Pickard, senior employment solicitor on our specialist Leisure & Tourism team, at lauren.pickard@keebles or call Lauren on 0114 252 1410.