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by Munro Research

Employment Opportunities Bill


Official Summary

A Bill to introduce more freedom, flexibility and opportunity for those seeking employment in the public and private sectors; and for connected purposes.

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Overview

The Employment Opportunities Bill aims to increase employment flexibility and opportunities by allowing for opt-outs from the national minimum wage, introducing a training wage, and potentially lowering the minimum wage in high-unemployment areas. It also clarifies employment rights for foreign nationals lawfully residing in the UK.

Description

This bill introduces several key changes to employment law:

Unlawful Prevention of Employment:

Foreign nationals lawfully residing in the UK (excluding those on visitor visas or with refused entry/stay applications) cannot be prevented from working, unless they are in detention.

National Minimum Wage Opt-Out:

Employees can opt out of the national minimum wage with written agreement from their employer. This opt-out can be reversed with three months' notice (unless waived by the employer). Importantly, the bill clarifies that no one is *required* to work below the minimum wage, and opting out doesn't affect national insurance benefits.

Training Wage:

A "training wage," lower than the national minimum wage, can be offered to employees under written contracts that include employer-provided training relevant to the job.

Low Pay Commission Inquiry & Secretary of State Duties:

The Low Pay Commission must investigate the impact of the minimum wage on employment in high-unemployment areas. If they recommend lowering the minimum wage in specific areas, the Secretary of State must create regulations to implement this change. These regulations are subject to parliamentary approval.

Existing Contracts:

Any changes to minimum wage levels will not affect existing employment contracts.

Government Spending

The bill states that any expenditure incurred by a Minister of the Crown or government department, and any increase in sums payable under other Acts resulting from this bill, will be paid from public funds. Specific figures are not provided in the bill text.

Groups Affected

  • Employees: Potential for both positive (increased flexibility, training opportunities) and negative (lower wages in some areas) impacts.
  • Employers: Potential for reduced labor costs (training wage, opt-out from national minimum wage), but also potential for increased administrative burden.
  • Foreign Nationals: Increased employment opportunities for those lawfully residing in the UK.
  • Low Pay Commission: Increased responsibilities regarding minimum wage investigations.
  • Secretary of State: Responsibility for implementing any changes to the minimum wage based on Low Pay Commission recommendations.
  • Parliament: Role in approving any regulations changing minimum wage levels.
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