While there is no legal definition, the term precarious is used to refer to a type of work which is poorly paid, unprotected, and insecure.
In practice, this captures situations where workers are not aware of their employment status, lack an employment contract, and have no access to basic employment rights such as paid leave or breaks. More seriously, this includes workers who are paid cash in hand, below the National Minimum Wage, and who may inadvertently be working on the black market.
Low income from cash in hand jobs paid below NMW rates is the clearest source of in-work poverty. In addition, work conducted without a contract and cash in hand payments makes it hard for individuals to document their employment history and access in-work benefits. Casual work arrangements also hinders career progression, which is another source of in-work poverty.
Our research has shown that workers who are paid cash in hand, below the NMW fail to meet the requirements of letting agencies. Their only option is to sublet illegally in overcrowded accommodation where their deposits are not protected and they are always under the threat of evictions.
Poorly paid often compels people to work more hours to compensate for the financially insecure nature of the job. This pressure to increase the hours of work leaves little time for socialising which, in turn, damages individual psychological well-being and erodes community relations.
In the case of EU workers, failure to prove worker status after 3 months of being in the UK can lead to being administratively removed from the UK, and banned from re-entering for up to 2 years.
While precarious work can affect everyone, the people most at risk are migrant workers with modest levels of education, basic knowledge of English and IT literacy. These constitute multiple barriers to (1) understanding the employment statuses and associated rights of the UK labour market,(2) accessing formal employment, and (3) taking action when employment rights have been breached.
The risk is exacerbated for migrant workers who tend to find employment and information by word of mouth, primarily within ethnic networks, and who are reluctant or unable to claim employment rights due to cultural taboos on challenging a prominent member of one's own diaspora.
We believe that precarious work can be eradicated through a joint effort of service provision, dedicated to helping individuals understand and claim their employment rights, as well as a top-down change in the way NMW breaches are investigated.
Workers: understand your employment rights →