Around one in seven workers in the sector report receiving no holiday entitlement, three times the rate across the rest of the economy, while around one in seven do not receive a pay slip (a rate 50% higher than the rest of the labour market).
The analysis also found that workers in small firms, employing fewer than 25 employees, are most likely to miss out on pay slips and holiday leave, as are workers on zero-hours and temporary contracts.
Lindsay Judge, senior economic analyst at the Resolution Foundation, said: “The UK has a multitude of rules to govern its labour market – from maximum hours to minimum pay. But these rules can only become a reality if they are properly enforced.
“Labour market violations remain far too common, with millions of workers missing out on basic entitlements to a pay slip, holiday entitlement and the minimum wage.”
She added: “The government’s welcome proposal to create a new single enforcement agency should leave it better placed to tackle these labour market violations than the multiple bodies currently operating, as long as it’s properly empowered and resourced.”