The Trade Union Congress (TUC) has raised concerns over job advertisements that pay below the National Living Wage, following new research that found numerous salaried positions falling short of the legal minimum.
The study, conducted on a single day in July, revealed 46 full-time job listings on prominent job boards such as Reed, Indeed, and CV-Library that appear to offer wages below the current National Living Wage.
The findings have prompted the TUC to call for stricter enforcement of minimum wage laws, highlighting a significant issue that may affect a broader range of job postings. According to the TUC, this could be indicative of a more widespread problem, with many job vacancies potentially underpaying workers.
Minimum Wage Breaches: A Growing Concern
The National Living Wage, as of 1 April 2024, is set at £11.44 per hour, equating to an annual salary of £20,820.20 for a full-time worker employed for 35 hours per week. Despite this, the TUC’s research found several job adverts with salaries that do not meet this threshold, suggesting a troubling trend of underpayment, even in salaried roles.
The TUC’s investigation uncovered that many of these advertised positions required significant qualifications or experience, yet still offered pay below the legally mandated level. For instance, a graduate copywriter role in Hampshire was listed with a salary range between £15,000 and £20,000, while an assistant accountant position requiring a minimum of two years’ experience was advertised with a salary of £16,770 to £22,308.
This discovery supports findings by the Low Pay Commission, which estimated that 29% of jobs paying at or below the minimum wage are salaried roles. The TUC believes this is a clear indicator that a considerable number of salaried workers may be receiving less than they are legally entitled to.
Enforcement and the Role of the Fair Work Agency
The TUC is urging the government to take robust action to address these violations, emphasising the need for a stronger enforcement mechanism as part of its commitment to a New Deal for Working People. This includes ensuring that internships are also subject to the National Minimum Wage to prevent exploitation of young and vulnerable workers.
A key focus of the TUC’s advocacy is the establishment of the Fair Work Agency, a new government body announced in the King’s Speech. This agency is expected to unify existing enforcement bodies, including the HMRC National Minimum Wage enforcement team, the Gangmasters and Labour Abuse Authority, and the Employment Agency Standards Inspectorate.
The TUC welcomes the creation of the Fair Work Agency but insists that its success hinges on the allocation of sufficient resources and authority. They argue that the agency must be equipped with a significantly larger number of inspectors and granted stronger powers to penalise employers who fail to comply with minimum wage legislation.
Addressing Discrimination in Wage Advertisements
The TUC’s findings also suggest that some job advertisements may inadvertently engage in age discrimination by listing salaries that only comply with minimum wage laws for workers under 21. Given that the National Living Wage applies to workers aged 21 and over, advertising salaries that do not meet this threshold could potentially exclude older workers and may be unlawful due to indirect discrimination.
For example, job adverts stipulating salaries that only meet minimum wage requirements for those under 21 might imply that the roles are not available to older candidates, which could constitute indirect discrimination. This issue further underscores the need for more rigorous oversight and enforcement of wage regulations to protect all workers.
A Call for Government Action
TUC General Secretary Paul Nowak emphasised the urgency of the situation, stating, “Nobody should be cheated out of the pay they are owed by their employer. But our research has found that lots of employers are advertising jobs at less than the legal minimum wage.”
Nowak also highlighted the broader impact of wage violations on the job market, noting that “These pay cheats undercut all those good employers who do the right thing. And that creates unfair competition.”
The TUC is calling on the government to seize the opportunity presented by the establishment of the Fair Work Agency to crack down on these violations and ensure that all workers receive at least the legal minimum wage. This, they argue, is crucial for maintaining fairness and protecting the rights of workers across the UK.
The issue of underpayment in job listings is not only a violation of legal standards but also a significant challenge for the future of work, where fairness and equality should be foundational principles. As the government moves forward with its plans for the Fair Work Agency, the effectiveness of this new body in addressing wage violations will be closely watched by workers and employers alike.
