New minimum overtime wage could affect millions of supermarket staff and care workers

The Taylor Review could mean far more for low-paid workers in retail, hospitality and social care than those operating in the gig economy, the Resolution Foundation said today (Tuesday).

The Foundation says that for all the focus on the gig economy, it is the recommendation of a new minimum overtime wage that could have far reaching consequences across the labour market. It notes that one in seven workers currently do paid overtime, with a third of all paid overtime hours worked in the retail and social care sectors.

The Foundation adds that the proposal to end ‘Pay Between Assignment’ contracts for agency workers, and lack of firm action on zero-hours contracts, will also affect far more workers than those who work via an app.

Torsten Bell, Director of the Resolution Foundation, said:

“The world of work is changing and public policy has been slow to catch-up, creating grey areas for firms and insecurities for workers. The Taylor Review is an attempt to close this gap.

“While much of the focus has been on relatively small shifts on the gig economy, the Review’s most radical proposal would actually have far more impact in traditional sectors such as retail and social care. A new minimum wage for overtime, forms of which already operate in the US and Australia, would be a big change for low earning workers struggling with tight budgets and insecure earnings.

“The boldness on overtime contrasts with a timid right for zero hour contract workers to request guaranteed hours, something that can all too easily be rejected by employers.

“Overall, this is a welcome contribution to a much needed debate about how we ensure our labour market reflects the ways in which people actually live their working lives.”