Overview

This bill mandates that workplace internships in the UK must adhere to the National Minimum Wage Act 1998, ensuring interns receive at least the minimum wage. Certain exceptions apply for students on placement as part of their studies, those of compulsory school age, apprentices, and other categories defined by the government.

Description

The National Minimum Wage (Workplace Internships) Bill aims to extend the minimum wage legislation to workplace internships. It defines a workplace internship as regular work or services provided in the UK for an employer (person, company, LLP, or public authority), with the primary goals of meeting learning objectives and providing practical experience.

Remuneration

The bill requires the Secretary of State to implement regulations ensuring interns receive at least the national minimum wage according to their age, as defined in the 1998 Act. Employers are generally exempt from paying National Insurance contributions for internships under 12 months, although they may choose to do so.

Exclusions

Several categories of internships are excluded from the minimum wage requirement. These include internships undertaken by students as part of their UK-based higher or further education courses; those of compulsory school age; those fulfilling an approved English apprenticeship; and those defined by regulations issued by relevant government ministers in the UK nations.

Government Spending

The bill's impact on government spending is not directly stated. However, it could potentially lead to increased compliance costs for the government in enforcing the new regulations, and a possible minor increase in National Insurance contributions if employers choose to pay them. No precise figures are provided in the bill text.

Groups Affected

This bill directly affects:

• Interns: Many interns will receive increased pay, ensuring they are fairly compensated for their work.
• Employers: Employers will face the cost of paying the minimum wage to interns (with some exceptions), potentially impacting business expenses and profitability.
• Government: Responsible for creating and enforcing the regulations, and potentially dealing with a small rise in compliance costs.
• Education institutions: The bill clarifies the status of internships as part of educational programs and the minimum wage expectations.

Powered by nyModel