Overview

This bill mandates that workplace internships in the UK must adhere to the national minimum wage, as defined by the National Minimum Wage Act 1998. Certain exceptions are made for students on placements as part of their studies, those of compulsory school age, and apprentices.

Description

The bill defines a "workplace internship" as regular work or service provided in the UK for an employer (person, company, LLP, or public authority) with the dual purpose of the intern achieving learning objectives/experience and gaining practical experience in a profession/occupation.

Remuneration

The Secretary of State will set regulations ensuring interns are paid at least the national minimum wage, based on their age. Employers are generally exempt from paying National Insurance contributions for internships under 12 months, though they may choose to do so.

Exclusions

The national minimum wage requirement does not apply to interns who are: students on mandatory course placements; of compulsory school age; undertaking approved apprenticeships; or meet criteria defined by the Secretary of State or devolved administrations (Scotland, Wales, Northern Ireland).

Extent and Commencement

The bill applies across the UK and comes into force two months after it's passed.

Government Spending

The bill is unlikely to significantly increase government spending. The potential decrease in Employer's National Insurance contributions for short internships might slightly reduce government revenue, but this is offset by increased tax revenue from interns earning the minimum wage.

Groups Affected

• Interns: Many interns will see a positive impact as they will receive the national minimum wage.
• Employers: Some employers will face increased labor costs, potentially impacting their profitability or internship programs. Others will benefit from the clarified legal framework.
• Government: A minor shift in revenue is possible through changes in National Insurance contributions and increased income tax from minimum wage payments.
• Students on placements: These students remain unaffected by the bill.
• Apprentices: Existing apprenticeship regulations remain unchanged.

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