Many Scottish workers being underpaid, figures show

23-03-2009

Many Scottish workers being underpaid, figures show
An increasing number of firms in Scotland are paying their workers below the minimum wage as a result of the credit crunch, new data has revealed.

Figures from HM Revenue and Customs have shown a dramatic rise over the past 12 months, with companies in the hospitality and beauty sectors being the worst offenders.

It was found that 174 firms are paying below the minimum wage compared to 142 in 2007, the Times reports.

In one instance an 18-year-old hairdresser from the north of Scotland was receiving a salary of £1.38 an hour.

Keith Dryburgh, social policy officer for the Citizens Advice Bureau in Scotland, said: "The UK government needs to ensure that all workers know the terms and conditions to which they are entitled and that rogue employers are stopped from exploiting vulnerable workers."

Working for too little affects your career as well as your bank balance, cautions a spokesperson for ClickAJob.

"Some employees, worried about holding on to whatever job they have, allow themselves to be exploited in the hopes that things get better," he says.

"It's a bad precedent to set because if dodgy employers can get away with it once, they'll do it all the time," he points out.

"Quite apart from the damage it does to self-esteem, being underpaid looks bad on your CV - the fact that you're paid less than you're worth suggests that you under-perform, a difficult stigma to get rid of when you know it isn't true."

This news comes after an announcement earlier this month that workers at Glasgow City Council would be paid a new minimum wage of £7.

Related categories: HR / Recruitment.


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