DPD Temporary Workers Missed Sick Pay and Pensions 2026

DPD temporary workers may have missed out on sick pay and pension contributions, according to internal documents that suggest low-paid staff at the UK courier giant have not received their legal entitlements. The missing payments, typically included in the charge rate that brands pay recruitment agencies, raise serious concerns about employment law compliance and worker exploitation.

What the Internal Documents Reveal

Internal spreadsheets calculating the cost of employing thousands of temporary staff at DPD show that statutory sick pay and pension contributions are absent from the cost breakdowns. This suggests that workers either were not paid when they fell ill, were discouraged from taking sick days, or were removed from roles before the 12-week threshold for pension auto-enrolment.

Zoë Lagadec, principal at Mulberry’s employment law solicitors, stated: “This raises questions if the workers are receiving statutory sick pay – as it doesn’t make sense that nobody gets ill – or if they are being moved on before 12 weeks service in order to avoid pension contributions.”

Legal Obligations for Employers

Under UK law, all workers, including temporary agency workers, are entitled to statutory sick pay (SSP) if they meet eligibility criteria, and pension auto-enrolment applies after three months of service. Withholding these benefits is a clear breach of employment law and could lead to tribunal claims, fines, and reputational damage.

The Association of Labour Providers (ALP) has issued guidance stating that labour users must ensure their supply chains are funded adequately to cover legal costs. The ALP warns that unrealistically low charge rates can only be achieved through worker exploitation, tax evasion, or both.

Impact on DPD’s Workforce

DPD, which promotes itself as one of Europe’s leading parcel groups, employs more than 15,000 people and delivers over 260 million parcels annually. Its clients include major retailers like John Lewis, Marks & Spencer, and Amazon. The internal documents cover more than 3,000 temporary workers, indicating the scale of potential non-compliance.

Workers who miss out on sick pay may be forced to work while ill, risking their health and safety. Missing pension contributions mean lower retirement savings, which disproportionately affects low-paid workers who already struggle to save.

Comparison of Worker Entitlements

Key Takeaways for Employers and Workers

• Always verify that recruitment agencies include statutory sick pay and pension contributions in their charge rates.
• Workers should keep records of their hours and contracts to ensure they receive all legal entitlements.
• Employers must audit their supply chains to avoid complicity in worker exploitation.
• Legal penalties for non-compliance can include back pay, fines, and tribunal awards.

How to Ensure Compliance

To avoid such issues, companies should conduct regular audits of their temporary staffing costs and contracts. They should also work only with recruitment agencies that are accredited by bodies like the ALP and that provide transparent breakdowns of pay and benefits.

Workers who believe they have been denied sick pay or pension contributions should contact the Advisory, Conciliation and Arbitration Service (Acas) or seek legal advice from an employment solicitor. They may be entitled to compensation for unpaid wages and benefits.

DPD has not yet publicly responded to the findings. However, the company has a responsibility to ensure that all workers in its supply chain are treated fairly and lawfully. The revelations highlight a broader issue in the gig economy where temporary workers often fall through the cracks of employment protections.

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