By Hannah Rodger
TENS of thousands of Scots were paid less than the legal minimum wage last year, according to figures analysed by a charity.
Citizens Advice Scotland (CAS) experts have looked at the HMRC data for last year, and claim 36,876 Scottish employees were potentially paid less than the statutory amount for their work.
In the UK on average, business owners owe around £6,500 to their workers in salary arrears.
CAS social justice spokeswoman Mhoraig Green has slammed the figures, describing them as “a wake-up call” for Boris Johnson’s new Government, but warned they are just the “tip of the iceberg”.
Overall, more than 400,000 people in the UK were paid less than the national minimum wage last year, which was £7.83 per hour for over-25s. It increased this year to £8.21, while campaigners still call for employers to pay the “real living wage” at £9.30 per hour.
The living wage, which is based on the cost of living, is backed by the Scottish Governmen and around 1,700 business in Scotland are accredited living wage employers.
Despite this, according to the Living Wage Foundation, 470,000 people in Scotland do not earn this amount and 182,000 children live in poverty despite having one person in their household in work.
Earlier this year, CAS tried to improve young people’s knowledge around their employment rights, and is now backing a new body which would have the powers to investigate any breaches of the national minimum wage.
The charity also supports the body being able to probe breaches in maternity, holiday, and sickness pay as well as dismissals, redundancy and other employment rights.
Green said: “These 37,000 workers are just the tip of the iceberg. Many more in the informal economy won’t be identified in these numbers. This should act as a wake-up call to our new Government to ensure that 2020 is the year the minimum wage must become a legal reality.
“Our network in Scotland sees hundreds of thousands of people every year, and a significant proportion of our clients experience in-work poverty. This indicates that the current minimum wage rates are not sufficient to enable many people to live above poverty levels, even when they are paid in full.
“With living costs rising and social security support reducing, people who go out to work should be able to earn a wage that allows them to live a decent life, provide for their family and live in dignity. That is clearly not the case for too many households.
“Our advisers gave out almost 12,000 pieces of advice relating to pay and entitlements at work last year, and we regularly see cases of employers paying illegally low rates, or refusing to pay holiday pay, which all workers are entitled to. Particularly common are cases involving non-UK nationals, and workers who are paid ‘cash in hand’ or not given written contracts or payslips.
“The figures we publish today are simply unacceptable. Employers need to understand that paying the statutory minimum wage rate for their workers is not optional. It is the law.”
Scotland’s Minister for Business, Fair Work and Skills Jamie Hepburn said: “The UK national living wage is the minimum requirement that all workers should be paid by law, and there is no excuse for employers to pay less.
“The Scottish Government supports the payment of the real living wage of £9.30 per hour as a minimum rate for all workers over the age of 18.
“Pay legislation remains reserved, and the UK Government should do more to ensure employers comply with their obligations.
“Meanwhile, we will continue to encourage every organisation, regardless of size, sector or location to ensure all staff receive a fair day’s pay for a fair day’s work as part of our progressive Scottish Fair Work approach.”
Workers tell of their low wage horror
Across Scotland, people have been contacting Citizens Advice Bureaus with their tales of low wage woe.
An East Scotland branch reported that one of their clients, and two friends, had been working in a restaurant during the summer without a proper contract.
The group, who were all EU citizens aged between 20 and 22, had been given contracts to sign but their employer had never provided a copy.
The clients had been working varying shifts of up to 80 hours a week, for an offered salary of about £150 per week - vastly below minimum wage and is vastly above the 48 hour maximum allowed by law.
If the client didn't want to work, the employer would get angry and complain to them, threatening their job safety. The employer also did not pay the clients, instead offering them only what was necessary for their rent and pocket money’ for items like packets of cigarettes. This was as opposed to the Scottish workers in the same establishment, who, after complaining, received the full money owed to them.
The CAB said the case showed evidence of potential discrimination. Three days ago the group were told to not return to the business. The employer currently owes about £7000 between the three employees.
A North of Scotland CAB reported of a client who had been working at a tattoo parlour for the past two months.
They said the person has been working without a contract and has been paid cash (initially £1,250 per month and recently reduced to £850 per month).
The person typically works 8am - 5pm with a half hour lunch break, 6 days per week, totalling over 200 hours per month. The client does not receive payslips and has been paid cash 'here and there'.
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