News Release issued by
the COI News Distribution Service on 15 September 2011
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 receive it.
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.
Employment Relations 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.
Notes to editors:
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 October 2011.
· 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 hour
· The rate for 16-17 year olds will increase by 4p to £3.68 an hour
· The rate for apprentices will increase by 10p to £2.60 an hour.
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.
5. BIS's online newsroom contains the latest press
notices, speeches, as well as video and images for download. It
also features an up to date list of BIS press office contacts. See
http://www.bis.gov.uk/newsroom for more information.
Contacts:
BIS Press Office
NDS.BIS@coi.gsi.gov.uk
Henry Tanner
Phone: 020 7215 5947
henry.tanner@bis.gsi.gov.uk