Overview

This bill aims to prevent the exploitation of unpaid work experience by amending the National Minimum Wage Act 1998. It proposes to prohibit unpaid work experience exceeding four weeks, ensuring that individuals undertaking longer placements receive the national minimum wage.

Description

The Unpaid Work Experience (Prohibition) Bill seeks to amend the National Minimum Wage Act 1998. Specifically, it introduces a new clause (section 3(3A)) prohibiting any arrangement that provides work experience for over four weeks (continuous or non-continuous) without paying the national minimum wage. A further clause (section 41A) mandates the Secretary of State to create regulations enforcing this change. These regulations will ensure that individuals aged over compulsory school leaving age but under 26 undertaking work experience for more than four weeks are paid the appropriate minimum wage. The definition of "work experience" includes observing, assisting with, and carrying out tasks to gain workplace experience. The bill applies across the whole of the United Kingdom and comes into force immediately upon passing.

Government Spending

The bill is likely to increase government spending due to the increased cost of enforcing the new regulations and the potential for back pay claims. Precise figures are unavailable in the bill text itself. The cost will depend on the number of affected individuals and the complexity of administering the new provisions.

Groups Affected

Groups potentially affected include:

• Young people (aged 16-25): Those undertaking unpaid work experience for longer than four weeks could gain the right to receive back pay and future minimum wage payments.
• Employers: Businesses offering unpaid work experience exceeding four weeks will be required to comply with the new regulations and pay minimum wage or face penalties.
• Organisations providing work experience: These organisations, including charities and other non-profit entities, will also be subject to the new regulations and have to pay minimum wage for work experience lasting more than four weeks.
• Government agencies: Responsible for enforcing the new regulations and resolving any disputes.

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