A 'shadow economy' of firms like hand car washes and nail salons is exploiting workers – and regulations are making things worse

By Rich Pickford, Manager of Nottingham Civic Exchange, Nottingham Trent University
Alan Collins, Professor of Economics and Public Policy, Nottingham Trent University
Ian Clark, Professor in Work and Employment, Nottingham Trent University

Almost a million UK workers do not receive holiday pay and the UK continues to lag behind most European countries in tackling the exploitation of these workers.

Our research indicates this is because the UK’s regulatory framework for businesses is too permissive. Its complexity also gives certain types of business cover to flout the rules. And regulators just don’t have the resources to monitor these businesses properly and force them to abide by the rules.

The regulatory…

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