TUC claims some employment agencies 'cheat' workers

Many UK workers are earning less than the minimum wage, because some employment agencies are making illegal deductions from their pay, a Trades Union Congress (TUC) report has claimed.

The TUC report found that a number of 'dodgy' agencies routinely made deductions from temporary workers for cashing pay cheques, transport, accommodation and providing clothing and safety equipment which brings the hourly rate for many agency workers to underneath the current minimum wage of £4.85 an hour. Migrant workers were those most likely to be affected by these practises, the TUC said.

Agency workers can bring complaints against any employment agency if they believe they are being subjected to unfair charges, under the minimum wage legislation. However, the TUC said that many workers are unaware of their rights and are also terrified of losing their jobs and accommodation, if they complain. The TUC report said that this was the reason why the Department of Trade and Industry's (DTI) Employment Agency Standards Inspectorate received so few complaints.

The only other deduction that an agency can take from an employee's wages, apart from the usual deductions, such as tax and National Insurance, is for accommodation, up to a limit of £26.25 per week. If this takes a worker's wage below the minimum level, it is not a breach of legislation.

The TUC's report, 'Below The Minimum: Agency workers and the minimum wage', has been published ahead of next week's debate on the European Temporary Agency Workers Directive. The Directive would make it more difficult for agencies to exploit vulnerable workers and would also give workers improved job security, pay, working time, holiday and maternity rights.

The TUC is urging the government to support the Directive, as well as increase resources to DTI inspectors to enable successful prosecutions to be brought against unscrupulous agencies.

TUC General Secretary, Brendan Barber criticised regulations introduced in 2003 to protect workers from being exploited, saying that they were "clearly doing nothing of the sort".

He said: "Agency workers deserve a better deal than many of them are getting at the moment. Vulnerable workers need protection and the Government should give its full support to the European Directive so that the legal standing of UK agency workers is improved."

A copy of 'Below the minimum: Agency workers and the minimum wage' is available from www.tuc.org.uk

(KMcA/SP)