Unpaid Trial Work Periods (Prohibition) Bill

Debate between Luke Hall and Alan Whitehead

2nd reading: House of Commons
Friday 16th March 2018 Commons Chamber

[Dr Alan Whitehead (Southampton, Test) (Lab)]

May I congratulate the hon. Member for Glasgow South (Stewart Malcolm McDonald) on bringing this important and well-constructed Bill to the House? We have perhaps been diverted towards the issue of people not being paid for one or two hours’ work, but essentially the Bill is about the principle of a fair day’s pay for a fair day’s work. Unpaid work trials have become a widespread practice in the hospitality, entertainment and retail sectors, and we need to place that development in a wider context.

In recent years we have witnessed an explosion of exploitative working practices associated with the so-called “gig economy”, a commonplace phrase that does not do justice to what is really occurring, namely the avoidance of employment rights, benefits and remuneration on a mass scale. Unpaid work trials must be seen in the broader context of a range of sharp practices associated with low paid, insecure employment in this country, designed to cut the burden on the employer at the expense of hundreds of thousands, if not millions, of workers.

Just in the past few weeks this place, as the hon. Gentleman has mentioned, has discussed tipping practices that take rightfully earned tips from waiting staff and recycle them to top up the pay of other workers to the level of the minimum wage. In the past two weeks we have seen how major, international companies such as Wagamama and TGI Fridays have failed to pay their staff the minimum wage.

[Luke Hall]

Does the hon. Gentleman share my shock and concern that the British Retail Consortium failed to acknowledge that that was even a problem and refused to even meet the hon. Member for Glasgow South (Stewart Malcolm McDonald) to discuss the matter?

[Dr Whitehead]

Yes, I share the hon. Gentleman’s shock and concern. That underlines how a number of very important institutions in this country continue to underestimate and even turn a blind eye to all such practices associated with the gig economy, one of which is unpaid work trials. There is a pattern and it has not been clearly addressed by the Taylor review, and it certainly has not been addressed by the Government’s weak response to that review.

More than £1 billion is lost in wages every year through unpaid work, and the continuing practice of unpaid work trials is a contributing factor to that.