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15/09/2011
Minimum Wage Applies To Interns – BIS
The Government has released guidance to businesses clarifying whether they should be paying their interns or work experience staff the minimum wage.
The Department for Business, Innovation and Skills (BIS) said on Thursday their latest publication would give greater clarity for businesses with a new "worker checklist" for employers and examples of case studies, which aims to make sure that those who are entitled to the National Minimum Wage (NMW) receive it.
According to the BIS, entitlement to the NMW does not depend on a job title but on whether the arrangement they have with an organisation makes them "a worker" for NMW purposes.
"Where an individual is a worker - and no exemption applies – then they must be paid at least the NMW."
Employment Relations Minister Edward Davey said: “Internships and work experience of all forms offer an excellent opportunity in helping to bridge the gap between education and the workplace.
“Fairness though is absolutely paramount with all placements. When a worker is entitled to the minimum wage, they should be paid it and we will continue to enforce the law.
"Today’s publication will help clarify this for employers and will also make sure that all interns and those on work experience placements have a better understanding of their entitlement to the minimum wage.”
According the BIS's advice, a worker is defined as; someone with a contract or other arrangement with an organisation that entitles the individual to a reward; The reward is a monetary payment; The individual has to turn up for work even if they don't want to; The individual has to perform work given to them and the business is not the individual's client or customer.
A full description of the BIS definition of 'worker' is available at the BIS website.
The minimum wage is now £5.93 per hour. In April, the Government announced new NMW rates that will come into force on 1 October 2011, and will see the adult rate increase by 15p to £6.08 an hour.
(DW/GK)
The Department for Business, Innovation and Skills (BIS) said on Thursday their latest publication would give greater clarity for businesses with a new "worker checklist" for employers and examples of case studies, which aims to make sure that those who are entitled to the National Minimum Wage (NMW) receive it.
According to the BIS, entitlement to the NMW does not depend on a job title but on whether the arrangement they have with an organisation makes them "a worker" for NMW purposes.
"Where an individual is a worker - and no exemption applies – then they must be paid at least the NMW."
Employment Relations Minister Edward Davey said: “Internships and work experience of all forms offer an excellent opportunity in helping to bridge the gap between education and the workplace.
“Fairness though is absolutely paramount with all placements. When a worker is entitled to the minimum wage, they should be paid it and we will continue to enforce the law.
"Today’s publication will help clarify this for employers and will also make sure that all interns and those on work experience placements have a better understanding of their entitlement to the minimum wage.”
According the BIS's advice, a worker is defined as; someone with a contract or other arrangement with an organisation that entitles the individual to a reward; The reward is a monetary payment; The individual has to turn up for work even if they don't want to; The individual has to perform work given to them and the business is not the individual's client or customer.
A full description of the BIS definition of 'worker' is available at the BIS website.
The minimum wage is now £5.93 per hour. In April, the Government announced new NMW rates that will come into force on 1 October 2011, and will see the adult rate increase by 15p to £6.08 an hour.
(DW/GK)
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