Overview

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

Description

This bill introduces several key changes to employment law:

• Unlawful Prevention of Employment for Foreign Nationals: It prevents the unlawful prevention of employment for foreign nationals lawfully resident in the UK, except under specific circumstances (visitor visa, refused entry/stay application, or detention).
• National Minimum Wage Opt-Out: Employees can choose to opt out of the national minimum wage, with written agreement from their employer. This opt-out can be withdrawn after a three-month notice period (unless waived by the employer).
• Training Wage: A lower "training wage" can be offered to employees under written contract, which must include a commitment to relevant training.
• Low Pay Commission Inquiry and Regional Minimum Wage: The Low Pay Commission must investigate the impact of the national minimum wage on job creation in high-unemployment areas. Based on this, they may recommend a lower regional minimum wage, which the Secretary of State must implement via statutory instrument subject to parliamentary approval. Existing contracts will not be affected.

Government Spending

The bill states that any expenditure incurred by a Minister of the Crown or government department under this Act, and any increase in sums payable under other Acts due to this Act, will be paid from public funds. No specific figures are provided.

Groups Affected

• Employers: May face reduced labor costs with the training wage and potential for lower minimum wages in certain regions, but also increased administrative burdens.
• Employees: Could benefit from increased employment opportunities, but some may experience lower wages if they opt out of the minimum wage or are employed under the training wage.
• Foreign Nationals: Lawfully resident foreign nationals will have clearer employment rights.
• Low Pay Commission: Increased responsibilities in investigating regional minimum wage variations.
• Secretary of State: Responsible for implementing any changes to the minimum wage based on the Low Pay Commission's recommendations.
• Parliament: Will have the power to annul any regulations made by the Secretary of State to implement changes to the minimum wage.

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