Parliamentary.ai

Overview

This bill aims to amend the National Minimum Wage Act 1998 to prohibit unpaid work experience placements exceeding four weeks. It mandates the payment of the national minimum wage to those aged 16-25 undertaking such placements.

Description

The bill amends the National Minimum Wage Act 1998 by adding two new sections.

Section 1: Prohibition of Unpaid Work Experience introduces a clause preventing any arrangements which provide for unpaid work experience for over four weeks, continuous or non-continuous.

Section 41A: Application of this Act to Persons Undertaking Work Experience requires the Secretary of State to ensure the Act applies to those on work experience exceeding four weeks. Within six months of the Act's passing, regulations must be put in place to ensure that those aged 16-25 undertaking such placements receive the national minimum wage.

The bill defines "employer" broadly to include any organisation providing work experience and "work experience" to cover a wide range of activities aimed at gaining workplace experience.

The bill applies to England, Wales, Scotland, and Northern Ireland and comes into force on the day it is passed.

Government Spending

The bill is likely to increase government spending, as it will require employers to pay the national minimum wage to individuals previously undertaking unpaid work experience. The precise cost is difficult to predict as it depends on the number of individuals currently undertaking such placements and their age.

Groups Affected

• 16-25 year olds: This age group undertaking work experience exceeding four weeks will be positively affected, gaining a minimum wage payment for their work.
• Employers: Businesses offering work experience placements longer than four weeks will incur increased costs due to the mandatory minimum wage payment. This could lead to fewer opportunities or a change in how placements are structured.
• Organisations offering work experience: Similar to employers, these entities will incur increased costs for complying with the new legislation.
• Government: Will face additional costs related to administration and enforcement of the new regulations. It might also need to make additional resources available for potential legal challenges arising from the bill.