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by Munro Research

Unpaid Work Experience (Prohibition) Bill [HL]


Official Summary

A Bill to make provision for the prohibition of unpaid work experience exceeding four weeks, and for connected matters

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Overview

This bill aims to prevent the exploitation of young people by prohibiting unpaid work experience placements exceeding four weeks. It amends the National Minimum Wage Act 1998 to ensure that anyone undertaking work experience for longer than four weeks is paid the national minimum wage.

Description

The Unpaid Work Experience (Prohibition) Bill amends the National Minimum Wage Act 1998. Specifically:

  • It adds a clause preventing any provision under section 3(2)(a) which excludes individuals participating in work experience schemes lasting longer than four weeks from the national minimum wage.
  • It adds a new section (41A) requiring the Secretary of State to make regulations applying the National Minimum Wage Act to those undertaking work experience exceeding four weeks, within six months of the Act's passing.
  • These regulations will ensure that those who have left compulsory schooling but are under 26 years old are paid the national minimum wage for any work experience exceeding four weeks.
  • The bill defines "employer" to include any organization providing work experience and defines "work experience" broadly to encompass observation, assistance, and task completion aimed at gaining workplace experience.

Government Spending

The bill is likely to increase government spending due to the need to enforce the new regulations and potentially increased costs of enforcing the national minimum wage for previously unpaid work experience placements. Exact figures are not provided in the bill itself.

Groups Affected

  • Young people (under 26 and not in compulsory education): Will benefit from receiving the national minimum wage for work experience exceeding four weeks.
  • Employers/Organisations offering work experience: Will be required to pay the national minimum wage for work experience placements lasting longer than four weeks, potentially impacting their budgets.
  • Government: Will incur costs related to enforcement of the new regulations.
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