· Features

There are still more good guys than bad in the corporate jungle

A young relative of mine was recently delighted to be offered a job in sales. His family were relieved. At last he could start out in the world of work and begin building an independent life.

Although I’m no employment lawyer, he asked me to look through his offer letter and contract. 

What became clear very quickly, however, was that he was not being offered a job at all. Despite the fact the offer letter used the words 'job' and 'employment', this was no more than a freelance, commission-only contract. Nobody had explained this to him, or that he would be a self-employed salesperson with no employment rights, sick leave or annual leave entitlement, and, most crucially, with a duty to sort out his own tax and national insurance.

As you might imagine, breaking this to him and his family was tricky and very deflating. This company was exploiting the fact that many young people are desperate for jobs and can be easily conned into accepting highly precarious work where they bear all the risk and the firm bears none.

Of course, the wider fear is that some employers will always take advantage of labour surpluses - whether it be through unpaid internships, unscrupulous use of free work-experience placements, or draconian 'performance management' that is barely distinguishable from constructive dismissal. And they do so safe in the knowledge that another 50 people will happily join the queue for a vacancy, no matter how casual the deal. It's hard to say whether these practices have increased during the downturn, but the weight of 'anecdata' is growing.

For example, the 2012 Skills and Employment Survey revealed that roughly one in four employees was afraid of losing their job and anxious about unfair treatment. Up to 40% were anxious about a changed job status - such as less say, pay or interesting work. We also know that 'presenteeism' - going to work when ill - has increased during the downturn, with some employees worried that a poor sickness record will put them in the frame for redundancy if the axe falls.

The mood music from the Government hasn't helped either, with attempts to make dismissal easier or to erode job security (in exchange for shares) sending out the message that the biggest contribution employees can make to corporate success is to be cheaper and more disposable.

On the face of it, the drop in real wages might be another sign of employers taking advantage, but the Institute for Fiscal Studies suggests it is not always so simple. For many firms and their employees, trading wage growth for job security has been an explicit choice. One reason unemployment has not raced to even higher levels is that many companies have worked hard to preserve jobs, making deals with unions on wage restraint rather than opting for redundancies. This shows not all employers share the instinct to 'make hay' during a downturn. In addition, there are companies that have thought about how they can support employees during periods of change or downsizing, investing in employee wellbeing and making a special effort to communicate with staff and involve them. Although, worryingly, the surveys suggest some public sector employers care less about this.

Despite the horror stories, I'm optimistic enough to think that there are still more good guys than bad out there in the corporate jungle. But we all need to shine a light on indefensible practices and exploitation, especially of the young, wherever we find it.

Stephen Bevan (pictured) is director of the workforce effectiveness centre at The Work Foundation