Recovery of £59,000 for five IT Agency Workers
By Fair Work Agency ·
Five workers received a combined reimbursement of more than £59,000 in unpaid wages following action by the Fair Work Agency (FWA).
The payment came following a complaint by the workers to our Employment Agency Compliance (EAC) team that they had not been paid for 19 days of work completed through an agency in May.
The FWA contacted the agency who said that payment had been withheld because the workers had left to work through another employment business and also advised that each worker had signed an agreement to opt out of the Conduct of Employment Agencies and Employment Business Regulations 2003 (Conduct Regulations).
The Conduct Regulations are the legal rules that set the minimum standards for recruitment agencies and protect workers and hiring clients. Contractors who are working through their own limited company may choose to opt out of being protected under this regulation, and if this is the case, agencies must request a formal opt-out agreement for their own records.
The Fair Work Agency Inbound Inspector who led the investigation said:
After stating payment had been withheld because the five workers had opted out of the Conduct Regulations, the agency could not provide sufficient evidence of the hirer being notified of the opt-out agreements, as required by Regulation 32. As a result, the opt-outs were not valid and the Conduct Regulations continued to apply to the workers. Consequently, the withholding of payment constituted a breach of Regulation 12 and as a result of the investigation, all monies owed to the five workers were paid in full.
After stating payment had been withheld because the five workers had opted out of the Conduct Regulations, the agency could not provide sufficient evidence of the hirer being notified of the opt-out agreements, as required by Regulation 32. As a result, the opt-outs were not valid and the Conduct Regulations continued to apply to the workers.
Consequently, the withholding of payment constituted a breach of Regulation 12 and as a result of the investigation, all monies owed to the five workers were paid in full.
The Fair Work Agency’s Head of Compliance, Inspections and Tribunals said:
This is a prime example of how we support workers who know they have been underpaid and need support in receiving the money they are rightfully owed. The sums returned to these workers were significant, and the stress and hardship caused when payments are withheld is not acceptable.
This is a prime example of how we support workers who know they have been underpaid and need support in receiving the money they are rightfully owed.
The sums returned to these workers were significant, and the stress and hardship caused when payments are withheld is not acceptable.
Since the start of the Fair Work Agency in April, more than £300,000 has been recovered and paid to workers who have earned it.
By recovering payment at this stage, it also prevents such cases reaching an employment tribunal. If taken to a tribunal and found guilty, an employer or agency could face a penalty from the Employment Tribunal Penalties Team as well as paying back what they owe.
The ETP Team have assisted in securing payment in 80 cases, with a total value of more than £665,000.
The Head of Compliance, Inspections and Tribunals added:
It’s important that agencies adhere to the Conduct Regulations and have a very clear process in place to correctly record if a person does wish to opt out. This is a fantastic result for the workers, and if you do have any concerns over unpaid wages, please do contact us.
It’s important that agencies adhere to the Conduct Regulations and have a very clear process in place to correctly record if a person does wish to opt out.
This is a fantastic result for the workers, and if you do have any concerns over unpaid wages, please do contact us.
You can contact the Fair Work Agency by calling 0345 161 6000. You can also visit our website and record your complaint online.
Each worker specifically received:
- Worker 1 £11,970
- Worker 2 £9,120
- Worker 3 £10,260
- Worker 4 £10,602
- Worker 5 £17,100
Worker 1 £11,970
Worker 2 £9,120
Worker 3 £10,260
Worker 4 £10,602
Worker 5 £17,100
The exact ETP recovery amount for this financial year is £665,791.57.
Originally published by GOV.UK News & Communications