Thousands of UK hourly workers say they have had pay withheld, underpaid or otherwise short-changed by employers — a scale of abuse that poses a severe challenge for the prospective Employment Rights Bill.
The findings come from polling by legal tech provider Valla in collaboration with YouGov, which examined the experiences of workers on hourly contracts, as well as their knowledge of employment law remedies and protections.
The survey showed that 59% of hourly-paid workers report being victims of wage theft, with particular severity among those on zero-hours contracts — a segment known to be among the most precarious. The data also uncovered an overwhelming gap in legal literacy: 89% of workers don’t understand how employment tribunals function, and nearly all are unaware of the three-month deadline to bring a claim.
These revelations raise urgent questions: will the Employment Rights Bill, now progressing through Parliament, be robust enough to plug enforcement gaps and empower workers to reclaim their rights?
Wage theft is widespread, and unequal
While the overall 59% figure is alarming in itself, the breakdowns reveal deeper structural issues. The research shows that:
- Workers with disabilities and women both report wage-theft experiences at rates of around two-thirds of respondents, higher than the average.
- In transport and distribution, 71% say they have been underpaid or cheated.
- In the health services, 66% report the same.
These sectoral concentrations suggest that wage theft is not just an individual grievance but a systemic malfunction in certain work markets.
Previous studies hint at the cost of underpayment in UK workplaces. For example, over £1.65 billion is lost annually in overtime wage theft among younger workers alone.
Some studies have found that financial penalties alone may not stop wage theft, particularly in sectors where workers have little power to challenge their employers or lack awareness of their rights.
Wage theft can take varied forms: unpaid overtime, deductions for supplies or equipment, failure to pay for all hours worked (including off-clock work), nonpayment of holiday and more. As a concept, it has been described as a “personalisation of social harm”, because the cumulative impact on individuals, families and communities is profound.
Legal ignorance compounds the risk
Even where legal rights exist, many workers cannot use them because they are unaware or misinformed. The survey data show:
- 89% of the 34 million workers in the UK do not understand employment tribunals.
- Over a third of those aged 18–24 have never heard of a tribunal.
- 95% don’t know about the three-month time limit on bringing most employment claims.
- Many workers are unaware that conditions such as anxiety, diabetes or migraines are legally recognised as disabilities under equality law.
This gap in education means that even valid rights remain theoretical: workers are functionally locked out if they cannot recognise a breach or find the route to redress.
The legal literacy gap is especially acute among younger workers and those on precarious contracts, reinforcing cycles of exploitation.
What the Employment Rights Bill promises — and its risks
The Employment Rights Bill is being framed by the government as a landmark reform. Among its key proposals are:
- A ban on exploitative zero-hours contracts, including restrictions on exclusivity clauses.
- Guaranteed hours, reasonable notice for shifts, pay for cancelled or moved shifts.
- Expanded day-one rights for statutory sick pay, parental leave and other entitlements.
- Replacing the current three-month deadline for claims with a more flexible system (rolling back to six months in many cases).
- Creation of a new Fair Work Agency (FWA) to centralise enforcement, issue sanctions, investigate breaches and even bring tribunal claims on behalf of workers in certain scenarios.
Some reforms are being scheduled for phased rollout, meaning certain protections may not arrive until 2026 or later.
Enforcement is the bottleneck
One of the biggest challenges facing the Bill is current enforcement weaknesses:
Tribunal delays and backlogs
The employment tribunal system already carries heavy case backlogs. Thousands of claims are pending, and adding volume from new rights without administrative capacity will likely worsen delays. Some legal observers warn that rights without swift remedy risk being illusory.
Fragmented enforcement landscape
At present, responsibility for underpayment, minimum wage breaches and employment disputes is spread across multiple agencies: the National Minimum Wage enforcement wing, HMRC, employment tribunals and sector regulators. Critics argue that this fragmentation weakens deterrence because no single body can act proactively or holistically.
The proposed FWA is intended as an attempt at consolidation. But for it to be meaningful, it must have authority, funding, transparent powers and capacity for proactive intervention (not just reaction to claims).
Sanctions that bite
Penalties for noncompliance need to be strong enough to deter repeat offenders. For workers with little leverage, the threat of enforcement needs to be visible, consistent and public. Otherwise, unscrupulous employers may continue to miss rights with impunity.
What HR and policymakers should watch for
As this legislation progresses, experts say HR professionals, regulators and labour organisations should focus on:
Awareness and education: rights must be accompanied by accessible guidance, workplace training and outreach so that employees recognise and enforce them.
Resource commitment: tribunals, the FWA and enforcement agencies need staffing, budget and infrastructure from day one.
Monitoring and transparency: regular publication of complaints, outcomes, sector data and enforcement to ensure accountability.
Targeted support for vulnerable workers: particular attention to youth, those on zero-hours contracts, low paid workers and minority groups.
Practical access to remedies: streamlined methods (including digital, low-cost routes) for claims and redress should be built in.
