Benefits

Employers and employees alike may benefit from substituting part of the employee's wages with various forms of payment in kind. This is because a large employer may be able to use its bulk spending power to buy insurance or vehicles more cheaply than an individual. Also, the tax treatment of certain benefits in kind is more beneficial to the employee than of payments in cash. The employer may also choose to provide the employee with more generous rights than the statutory minimum, for example to offer a contractual benefit of more days of paid holiday entitlement than is required under the Working Time Regulations 1998 (WTR 1998), SI 1998/1833.

Statutory paid holiday

Holiday benefits both employers and workers by allowing workers a period of relaxation and recuperation and holiday entitlement is often perceived as a key benefit by many employees.

WTR 1998, SI 1998/1833 (which implements Directive 2003/88/EC, the Working Time Directive and so is assimilated law—see Practice Note: Assimilated law) provides workers with a statutory entitlement to paid holiday. The right is to a total of 5.6 weeks' annual leave each 'leave year', made

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PAC criticises Home Office over failures to tackle exploitation under skilled worker visa route

The Public Accounts Committee (PAC) has found that the Home Office failed to adequately address the risk of exploitation and non-compliance under the skilled worker visa scheme, particularly in the care sector. In its 4 July 2025 report, the PAC criticises the department for failing to prevent abuse following the scheme’s 2022 expansion to support adult social care, highlighting serious weaknesses in safeguarding, compliance monitoring, and tracking of visa expiries. While the expansion helped alleviate workforce shortages during the pandemic, it also exposed migrant workers to exploitation, with evidence submitted to the inquiry detailing cases of debt bondage, excessive working hours and poor living conditions. Despite early signs of abuse, the Home Office was slow to respond and does not hold data on how many visa holders have been identified as potential victims of modern slavery. The PAC further found that the department lacks key data on visa compliance, including whether workers leave the UK at the end of their stay, are re-sponsored, or remain unlawfully, and has not analysed exit check data since the route’s introduction. In light of the recent decision to end overseas recruitment for care workers, the PAC warns of further risks unless cross-government workforce strategies are coordinated and calls for a joined-up approach to tackling exploitation and addressing domestic skills shortages.

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