Employers and interns get clarity on minimum wage
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on 15 September 2011 - BIS
Guidance providing greater
clarity for businesses who offer work experience, placements and
internships has been published today, as announced in the Social
Mobility Strategy in April.
The updated guidance from
Business Link and DirectGov includes advice on the payment of the
National Minimum Wage (NMW) for work experience staff and interns, and
clarifies when someone is entitled to this payment. The guidance also
includes a new worker checklist for employers and examples of case
studies, which aims to make sure that those who are entitled to the NMW
Entitlement to the NMW does
not depend on a job title but on whether the arrangement they have with
an organisation makes them a worker for NMW purposes. Where an
individual is a worker - and no exemption applies – then they must be
paid at least the NMW.
Minister Edward Davey said:
“Internships and work
experience of all forms offer an excellent opportunity in helping to
bridge the gap between education and the workplace. And for businesses
it allows them access to a wide talent pool of some of our best and
brightest who didn’t take the traditional route into a job.
“Fairness though is
absolutely paramount with all placements. When a worker is entitled to
the minimum wage, they should be paid it and we will continue to
enforce the law. Today’s publication will help clarify this for
employers and will also make sure that all interns and those on work
experience placements have a better understanding of their entitlement
to the minimum wage.”
In a Written Ministerial
Statement to the Houses of Parliament, Edward Davey also published the
Government's evidence to the Low Pay Commission for their 2012 NMW. The
Low Pay Commission will report back in early 2012 with their findings
and their recommendations for the NMW ratings.
1. The full version of the guidance can be found here - www.businesslink.gov.uk/nmw.
2. When the minimum wage was launched in 1999, the main rate
was £3.60. It is now set at £5.93 per hour. On the 7 April 2011 the
Government announced the new NMW rates that will come into force on 1
• The adult rate will increase by 15p to £6.08 an hour
• The rate for 18-20 year olds will increase by 6p to £4.98 an
• The rate for 16-17 year olds will increase by 4p to £3.68 an
• The rate for apprentices will increase by 10p to £2.60 an
3. Copies of the evidence to the LPC will be placed in the
libraries of both Houses and is available here - www.bis.gov.uk.
4. Anyone who feels they have had their National Minimum Wage
rights abused is encouraged to contact the Pay and Work Rights helpline
on 0800 917 2368 for free and confidential advice.
About the Author
© Crown Copyright. Material taken from the BIS Department for Business, Innovation and Skills. Reproduced under the terms and conditions of the Click-Use Licence.
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Article Published/Sorted/Amended on Scopulus 2011-09-21 18:05:01 in Employee Articles