Unpaid Britain Project Towards a typology of non-payment

Towards a typology of non-payment summary 

A paper proposing a typology of non-payment of wages has been prepared for discussion at a workshop on 9th May.  This typology (following revision as a result of the workshop) will be used to help us pick case studies for the next stage of our research.

The full paper outlines categories which have been produced by other authors (including state regulators), and discusses factors considered to have potential relevance to for the construction of the typology. It also includes a brief summary of the Unpaid Britain project, followed by a discussion of the existing data on non-payment.

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The proposed typology of non-payment

Taking into account the various discussions and caveats that are outlined in the above working paper, we find there are four key dimensions to unpaid wages:

Consent; Intent; Means & Magnitude

Means (the way the wages have not been paid) and Magnitude (the size of the sum involved relative to normal earnings) are clearly important. They might determine whether restitution by the worker is pursued, the route by which this occurs, whether there is a role for regulators, and the impact of non-payment. But they are descriptive and determined by the circumstances and intent of the employer, and the degree to which workers’ consent may be given.

typology of non-payment

Non-payment might occur when imposed by circumstances (absence of funds, or catastrophic failure of payment system for example), or as a result of error (data recording mistake), or misinterpretation (misinterpretation of minimum wage regulations etc.)

These are distinct from circumstances where there has either been a decision not to pay, or one (even by default) not to rectify systemic problems which result in non-payment. Interviews suggested strongly that plausible deniability was common, but difficult to detect in official and administrative statistics, because it is feasible to rectify any loss in individual cases without disrupting the model or incurring penalties. This differs from the construction industry “knocking” (complete failure to pay outstanding wages) or deliberate insolvency associated with phoenix companies, in that those are detectable, and (in theory at least) subject to penalties and thus less sustainable as a business model. This could also apply to extreme examples such as forced labour or criminal extortion. These are evident non-payments.

Consent is not a relevant consideration when non-payment is imposed by circumstances, or where there is an error or misunderstanding, but is of significance for purposeful non-payment. The proposed typology separates informed consent, which includes some unlawful, but voluntary contracts and agreed delays to payment, from without consent which would include all other categories (such as not receiving entitlements of which the worker was unaware, as well as the more blatant unauthorised deductions of which they were fully aware).

Unpaid Britain Project Towards a typology of non-payment

Unpaid Britain Typology Workshop

Have you ever had wages withheld or unpaid? Or helped someone who has? As a result of late cancellations, the Unpaid Britain project has two spare places going at our workshop on 9th May, and we would like to fill them with people with direct experience of unpaid wages.

The workshop is intended to help us with our research into this phenomenon. Our next phase will be the selection of case studies to look in detail at the causes, experiences and remedies for unpaid wages. However we feel that this cannot be done effectively without developing a typology of non-payment, to help us choose case studies that illustrate each type. We have developed a draft typology but the time has come for it to be scrutinised, and tested to ensure its robustness.  The Typology workshop will consist of 30 experts from a variety of backgrounds ranging from trade union, employment lawyers, academics, citizens advice, conciliation organisations, think tanks, charitable trusts, monitoring organisations and employers, all of whom have an interest in the subject of non-payment.

Held at Middlesex University’s Hendon Campus, the workshop will start at 12:30 with a light lunch reception, continue until 4.30 and end with a drink and a discussion. There will be short contributions from Anna Kyprianou Dean and Pro-vice chancellor of the Middlesex University Business School, Michael Reed, Principal Legal Officer (Employment) at the Free Representation Unit, Oxford University lecturer Jenny Chan (expert in Labour Rights in China), and project leader Nick Clark. However most of the afternoon will consist of discussions in working groups, as they scrutinise, critique and think of cases that fit or do not fit in to the Typology.

We would love to fill the two places now vacant. If you or any one you know has experience or expertise in the field of non-payment and is interested in attending on the 9th of May please contact us by emailing: e.herman@mdx.ac.uk.