Overview

The Employment Opportunities Bill aims to increase employment flexibility and opportunities by allowing individuals to opt out of the national minimum wage, introducing a training wage, and potentially lowering the minimum wage in high-unemployment areas. The bill also clarifies employment rights for lawfully resident foreign nationals.

Description

This bill introduces several key changes to employment law in the UK:

National Minimum Wage Opt-Out:

Workers can choose to opt out of the national minimum wage, but this must be done in writing and agreed to by both employee and employer. They can also withdraw their opt-out with three months' notice (unless the employer waives this). Crucially, the bill clarifies that no one is forced to accept below minimum wage, and opting out won't affect national insurance benefits.

Training Wage:

A training wage can be offered in written contracts providing for training in relevant skills. Workers on a training wage would not be entitled to the national minimum wage.

Regional Minimum Wage Variation:

The Low Pay Commission is tasked with investigating whether to recommend lower minimum wages in areas with above-average unemployment. The Secretary of State must then implement any such recommendations through statutory instruments, subject to parliamentary approval.

Foreign National Employment:

Lawfully resident foreign nationals (excluding those on visitor visas or with refused entry/stay applications) cannot be prevented from working unless they are in detention.

Government Spending

The bill states that any expenditure incurred by government departments under the Act, and any increase in existing government spending as a result of the Act, will be met from public funds. No specific figures are provided.

Groups Affected

• Workers: Potentially all workers, particularly low-paid workers who might opt out of the national minimum wage or be offered a training wage. Those in high unemployment areas could see a lower minimum wage.
• Employers: Employers will have increased flexibility in setting wages but face the responsibility of agreeing to opt-outs. They will also need to comply with the training wage provisions.
• Foreign Nationals: Lawfully resident foreign nationals will see their employment rights more clearly defined.
• Low Pay Commission: The commission will have additional responsibilities regarding regional minimum wage considerations.
• Parliament: Parliament retains control through the approval process for regulations on regional minimum wage variations.

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