DPD temporary workers may have missed out on sick pay and pensions, internal documents show
Low-paid temporary workers at one of the UK’s top courier businesses have missed out on entitlements to sick pay and pension contributions, internal documents suggest. Payments typically included in the “charge rate” that large brands pay recruitment companies to supply temporary workers are missing from internal spreadsheets calculating the cost of employing thousands of transient staff at DPD.
Key Findings
- Internal DPD records for over 3,000 temporary workers across two financial years include hourly pay, holiday pay, employer’s national insurance, and agency margins—but no sick pay or pension contributions.
- Experts suggest workers may not have received statutory sick pay, were discouraged from taking sick leave, or were removed from roles before pension contributions became due (after 12 weeks).
- Withholding these entitlements would breach UK employment law and contravene industry guidance from the Association of Labour Providers.
Industry Context
- Sick pay is a legal right from the first day of absence (previously after three days).
- Pension contributions are mandatory after 12 weeks of employment.
- Industry experts question whether recruitment agencies could profit from DPD’s charge rates while fulfilling these obligations.
The Association of Labour Providers’ guidance states: “Labour users that pay unrealistically low rates are knowingly or recklessly conniving in illegality as these rates can only be achieved through worker exploitation, tax evasion or both.”
DPD’s Response
DPD stated:
- “Our commercial arrangements with agencies allow them to fulfil their statutory obligations and are benchmarked against industry competitors.”
- “As a client, DPD pays an agreed charge rate to agencies for temporary labour. Under UK law, agencies are the primary employers responsible for statutory sick pay (SSP) and pension contributions.”
- “Our contracts require agencies to comply with all employment legislation, and we review supplier relationships to ensure compliance.”
Broader Implications
The findings emerge as the UK’s new Fair Work Agency (established 7 April) begins enforcing workers’ rights, consolidating oversight from multiple bodies including the Gangmasters and Labour Abuse Authority and HMRC’s minimum wage enforcement unit.