New TUC research found 46 jobs online on a single day in July 2024 advertising pay below the National Living Wage!
- Many are office jobs targeted at graduates and experienced workers with advertised salaries below £20,820 (the annualised minimum wage)
- The new Fair Work Agency must lead to a step change in enforcement to stop workers being “cheated out of pay”, says TUC
The TUC has warned that companies are advertising vacancies that pay below the minimum wage, on online job boards.
New research from the union body found 46 full-time jobs posted on the three sites (Reed, Indeed and CV-Library) on a single day in July that appear to pay less than the National Living Wage.
The TUC believes this could be the tip of the iceberg, with dozens of non-compliant jobs being posted on boards every week.
The union body is calling on the government to crack down on minimum wage breaches as part of its commitment to a New Deal for Working People; and to take robust action to ensure that those on internships are paid at least the national minimum wage.
Research findings
TUC researchers sampled job adverts on three sites (Reed, Indeed, and CV-Library) on a single day in July. They found 46 jobs advertised as full-time that appear to pay less than the minimum wage.
The National Living Wage has been set at £11.44 per hour since 1st April 2024. A full-time worker earning the current rate of National Living Wage should be paid a minimum annual salary of £20,820.20 for a full-time role of 35 hours per week.
While workers aged under 21 can be paid lower rates of the minimum wage, the TUC view is that advertising roles at lower rates potentially excludes older workers and could be unlawful due to indirect discrimination.
The Low Pay Commission estimates that 29% of jobs which pay at or below the minimum wage are salaried roles. Minimum wage abuses do not only occur within contexts such as insecure or illegal employment.
This research supported a view that: most of the 46 jobs found advertised at rates below the National Living Wage are full-time positions with annual salaries.
Of the 46 jobs advertised that appear to pay below the minimum wage:
- 26 stated that experience is required, and a further 3 that experience is desirable
- 7 stated requirements for qualifications, including professional certification and degree requirements
- 10 advertised annual salaries, or starting points in salary ranges, that are less than £20,000.
One advert, for a graduate copywriter in Hampshire, gave an annual salary range from £15,000 – £20,000.
Another, for an assistant accountant with a minimum of two years’ experience, gave a salary range of £16,770 – £22,308.
Improving enforcement
The prevalence of jobs advertised at less than the National Living Wage, suggesting that a growing number of salaried workers may now be experiencing underpayment, shows that a step change in enforcement is needed, says the TUC.
The government announced legislation in the King’s Speech to create a Fair Work Agency. This new body is expected to be a single inspectorate formed from the HMRC National Minimum Wage enforcement team, Gangmasters and Labour Abuse Authority, and the Employment Agency Standards Inspectorate.
The TUC welcomed this move and says that to be effective the Fair Work Agency will also need significantly more inspectors than the current system, and stronger powers to punish employers who breach the law.
TUC General Secretary Paul Nowak:
“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.
“Workers are not the only victims. These pay cheats undercut all those good employers who do the right thing. And that creates unfair competition.
“The new Fair Work Agency is a chance for the government to crack down on offenders and ensure all workers are paid at least the legal minimum.”
Want to know more about?
– Methodology: A non-exhaustive search was conducted across three online jobs boards to find full-time roles advertised below £20,820.20. Hourly pay was calculated using the working hours stated in the job description if available, if no working hours were confirmed, we assumed a 35-hour week for full time roles. Traineeships and apprenticeships were excluded from the search.
– Low Pay Commission research: The Low Pay Commission found that 28.8 per cent of minimum wage jobs are salaried roles in its report ‘The Minimum Wage Beyond 2024’.
– Age-related rates of the minimum wage: Since April 2024 the minimum wage has been:
- £11.44 for those aged 21 and over
- £8.60 for 18- to 20-year-olds
- £6.40 for 16- to 17-year-olds and apprentices.
The ‘National Living Wage’ refers to the headline adult rate of £11.44.
In July, the new government announced plans to end the lower rate of minimum wage for 18 to 20 year olds, instructing the Low Pay Commission to recommend rates that narrow the gap with the National Living Wage, taking steps year by year in order to achieve a single adult rate. Further information can be found in the government’s remit to the Low Pay Commission.
– Advertised salaries and age discrimination: The TUC found job adverts that stipulated a gross annual salary rate that could only meet minimum wage requirements for those under the age of 21.
These types of job advert suggest that the only way that the employer could comply with relevant NMW legislation is by employing a young person and paying them at the relevant youth rates.
They give the impression that the job is only available to people aged under 21.
This practice of advertising a job at lower wage rates disadvantages those aged 21 years and over, because legally they must be paid more so can’t do the job at the advertised salary rate. This could be possible indirect discrimination.
Who are the TUC?
The Trades Union Congress (TUC) claims to exist to make the working world a better place for everyone. They state that they bring together 5.5 million working people who make up their 48 member unions. They support unions to grow and thrive, and stand up for everyone who works for a living.
PAYadvice.UK 21/8/2024