Key facts
- Internal DPD records indicate sick pay and pension contributions were not included in cost calculations for thousands of temporary workers.
- Experts suggest this omission could mean workers missed out on legal entitlements.
- DPD states that recruitment agencies, as the primary employers, are responsible for statutory obligations like sick pay and pensions.
- DPD's contracts require agency partners to comply with all employment legislation.
- The findings emerge as the UK's new Fair Work Agency begins enforcing workers' rights.
Internal documents from DPD, a major UK courier company, suggest that low-paid temporary workers may have been deprived of statutory sick pay and pension contributions. The records, which detail the costs associated with over 3,000 temporary staff hired in the past two financial years, reportedly omit any allocation for sick pay or pension contributions.
Experts consulted by The Guardian stated that the absence of these entitlements in cost calculations raises questions about compliance with employment law. Zoë Lagadec, principal at Mulberry’s employment law solicitors, noted that this could indicate workers are not receiving statutory sick pay or are being moved before completing 12 weeks of service to avoid pension auto-enrolment.
Such practices, if true, would contravene UK employment law and industry guidance from the Association of Labour Providers, which emphasizes that labour users must pay rates that cover all legal employment costs. The trade body warns that unrealistically low rates can lead to worker exploitation or tax evasion.
DPD, which is owned by France's La Poste, operates extensively across Europe, handling over 260 million parcels annually for clients including John Lewis, Marks & Spencer, and Amazon. The company maintains that its commercial arrangements with agencies allow them to meet their statutory obligations and are benchmarked against industry competitors.
A spokesperson for DPD emphasized that under UK law, recruitment agencies are the primary employers of agency workers and are therefore directly responsible for administering and paying statutory sick pay and auto-enrolment pension contributions. DPD's contractual agreements with its agency partners mandate strict adherence to all applicable employment legislation. The company stated it continuously reviews its procurement processes to ensure partners uphold high standards of compliance and fair treatment.
This situation arises as the UK's new Fair Work Agency, established on April 7, begins its work to consolidate and enforce workers' rights, combining functions from several existing bodies.