From Mini to Maxi Jobs? Low Pay, ‘Progression’, and the Duty to Work (Harder)

Abstract

The scale of low pay and in-work poverty affecting the bottom three deciles of the labour market highlights the weaknesses in the two main mechanisms for assisting the low-paid: the statutory minimum wage provided for by the National Minimum Wage Act 1998 and State in-work benefits, particularly Universal Credit (UC) as it operates under the Welfare Reform Act 2012 and Universal Credit Regulations 2013. Both mechanisms are failing badly. The paper argues for new approaches. On the Labour side of what may be called the Labour Law–Social Security Law interface these include reconstruction of the national minimum wage scheme in the 1998 Act so that there are two minimum wage floors: a primary floor based on the current national scheme; and a higher, secondary floor at sectoral level. Sectoral wage-setting, informed by support from a Low Pay Commission with an extended remit, could in time pave the way to wider-ranging, regulated sectoral collective bargaining and systems which align more closely and efficiently to what employers can afford, and relieve the growing fiscal pressures on in-work social security. On the Social Security side, remedial work on UC is urgently needed, particularly on the work allowances which set the earnings thresholds at which in-work State support starts to be withdrawn. If mandatory ‘progression’ requirements under the in-work progression (IWP) scheme are to continue—which is likely given the government’s concern that, without this, workers in low hours, low paid mini jobs will opt to stay parked in such highly subsidised work—then exemptions and protections need to be strengthened and put on a statutory footing (particularly for workers with family responsibilities). Introducing what would, in effect, be a ‘right not to work’ in prescribed cases—typically when requirements impact disproportionately on workers and their family members—would go some way to establishing the necessary safeguards. Clearly, both low pay mechanisms face a crisis of growing proportions: a crisis of coverage as dependence grows and newer groups look to the State for support; a fiscal crisis as costs rise and cuts to support impact on its effectiveness; and a political crisis as support for UC and the wider low pay regime erodes.

Anything goes? Exploring the limits of employment law in UK hospitality and catering

“…Between 2013 and 2017, the institution of fees for cases brought to tribunals created an additional hurdle for those contemplating this route (Kirk, 2018), until the fees regime was judged unlawful by the Supreme Court as a barrier to workers' access to justice (Ford, 2018). In the 20 years since the NMWA came into force, meanwhile, the minimum wage, which continues to amount to little more than a subsistence wage, has become a 'going rate' or 'ceiling' for many workers, rather than a floor: the most that they can realistically expect to earn (Puttick, 2019). This is particularly the case in low-pay sectors including hospitality.…”

Human resource management practices in the context of rising right‐wing populism

“…In effect, this is a shift of emphasis from supporting the jobless to supporting employers who do not wish to pay a living wage. Ongoing welfare cuts in the United Kingdom have had broadly similar consequences (D'Arcy, 2018), including an increase in the proportion of the workforce dependent on state welfare to supplement inadequate wages (Puttick, 2018). This is not to suggest that the policy preferences associated with Trump and Brexit represent new phenomena.…”