Overview

This bill aims to amend the National Minimum Wage Act 1998 to prohibit unpaid work experience exceeding four weeks. It mandates that individuals undertaking work experience exceeding this period, and who are no longer of compulsory school age but under 26, receive the national minimum wage.

Description

The bill amends the National Minimum Wage Act 1998 by adding two new sections. Section 1(3A) prevents provisions exempting unpaid work experience from minimum wage laws from applying to schemes lasting longer than four weeks. Section 41A compels the Secretary of State to create regulations, within six months of the bill’s passing, ensuring that individuals aged between the end of compulsory schooling and 26 years of age participating in work experience exceeding four weeks receive the national minimum wage. The definition of "work experience" includes observation, replication, assistance, and task performance aimed at gaining workplace experience and "employer" is broadened to encompass any organization providing work experience.

Government Spending

The bill will likely increase government spending, as it mandates the payment of the national minimum wage to a group previously exempt. The exact financial impact will depend on the number of individuals affected and the duration of their unpaid work experience, which cannot be definitively determined from this bill alone.

Groups Affected

Groups potentially affected include:

• Young people (aged between leaving compulsory schooling and 26): They will benefit from the minimum wage if their unpaid work experience lasts longer than four weeks.
• Employers (businesses and organizations): They will be required to pay the national minimum wage to eligible individuals for work experience lasting longer than four weeks. This might increase their operational costs.
• Government: This bill has the potential to increase government expenditure depending on the number of individuals that take advantage of the minimum wage extension.

Powered by nyModel