Over 1,200 Leicester Garment Workers Illegally Underpaid

Data acquired by the BBC indicates that over 1,200 garment industry employees in Leicester experienced unlawful underpayment during the past five years. This substantial wage exploitation was identified through statistics published by HM Revenue & Customs (HMRC), encompassing the five financial years spanning 2019-20 to 2023-24. A sum of £177,678 in National Minimum Wage back pay for workers was uncovered, alongside £338,504 in fines imposed on textile businesses within the identical timeframe. The BBC’s freedom of information (FOI) submission further disclosed that no criminal convictions had been secured against any of the employers accountable for these underpayments. These statistics emerge following critical reports concerning Leicester’s garment supply chain during the pandemic. Previously this year, multiple workers from India informed the BBC that they agreed to hourly rates ranging from £3 to £5 due to difficulties in securing employment and their inability to communicate in English. Paramjit Kaur, a sewing machine operator, stated that certain employers concealed their actions by generating documentation that ostensibly indicated she received the National Living Wage. “They would show ‘full pay’ on the payslip but once the money was in my bank, I was told to return it,” she said. “I used to give it back in cash. Three or four factories used to do this.” When questioned about her reasons for returning the funds, the 61-year-old replied: “It felt dirty and bad but I needed to work. No-one was paying more.” Ms Kaur received assistance from the Fashion-workers Advice Bureau Leicester (FAB-L), an organization supported and financed by various retail brands. FAB-L reported that it had assisted approximately 90 workers in informally recovering unpaid earnings, by convincing apparel companies to make payments to prevent grievances being lodged with the brands they supplied. However, the BBC’s FOI request has brought to light specifics of official inquiries into adherence to minimum wage regulations within the textile sector. HMRC stated it initiated 171 investigations in Leicester — between April 2019 and April 2024 — constituting the majority of 255 cases throughout the UK textile industry. The tax agency further indicated it had discovered over £390,000 in outstanding wages for more than 2,000 employees nationwide. The advocacy organization Labour Behind the Label characterized the recently released figures as “significant” and “deeply concerning,” yet not unexpected. Kaenat Issufo, a representative from the group, commented that the underpayment of textile employees in Leicester demonstrated persistent systemic issues. Ms Issufo advocated for more sustainable, ethical approaches that place workers’ rights first. “I hope this encourages further action from both policymakers and industry leaders to make Leicester’s garment sector a model of integrity and fairness,” she stated. HMRC reported that it had already retrieved over 60% of the nationally identified unpaid wages and was employing civil enforcement powers to reclaim outstanding remuneration. This involves implementing measures to prevent employers from dissolving their companies to evade compensating workers. When questioned about the consequences if a company liable for wage arrears becomes insolvent, an HMRC spokesperson responded: “HMRC will engage with the official receiver and register the debt, making sure that any workers owed money are recognised as creditors. “Where HMRC has evidence that directors of limited companies have broken NMW [National Minimum Wage] law and/or acted inappropriately to avoid their obligations, we may make referrals to the Insolvency Service and seek director disqualifications.” The majority of HMRC’s investigations commenced between April 2020 and April 2022. Its FOI reply verified that no convictions had occurred concerning wage arrears, with HMRC further explaining that prosecutions are reserved for the most severe instances of non-compliance, as they can lead to delays and do not ensure workers receive payment. Concurrently, the government has disclosed intentions to establish a Fair Work Agency as an element of its Employment Rights Bill. For updates, follow BBC Leicester on Facebook, X, or Instagram. Story ideas can be submitted to eastmidsnews@bbc.co.uk or via WhatsApp at 0808 100 2210. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content of external websites. Information regarding its approach to external linking is available.