Missing payments suggest employment laws may have been breached by recruitment agencies used by courier company
Low-paid temporary workers at one of the UK’s top courier businesses have missed out on entitlements to sick pay and pension contributions, internal documents suggest.
The payments – typically included in the “charge rate” that large brands pay recruitment companies to supply them with temporary workers – are missing from internal spreadsheets calculating the cost of employing thousands of transient staff working at DPD.
This absence suggests workers have either not been paid their entitlements, were discouraged from taking days off when sick, or were removed from roles before pension contributions became due, experts said.
Zoë Lagadec, principal at Mulberry’s employment law solicitors, said: “This raises questions if the workers are receiving statutory sick pay – as it doesn’t make sense that nobody gets ill – or if they are being moved on before 12 weeks service in order to avoid pension contributions.”
Withholding sick pay or pension contributions when they come due would be a breach of employment law by recruitment agencies and seemingly contravenes industry guidance published by the Association of Labour Providers.
The trade body’s charge rate guidance adds: “Supermarkets, brands and other labour users have a clear responsibility to ensure that labour providers throughout their supply chains are paid rates that fully reflect legal employment costs and...
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