Asked by: Stewart Malcolm McDonald (Scottish National Party - Glasgow South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his Department's policy to include an assessment of the effect of unpaid work trials on levels of employment as part of the review of the international evidence on the impacts of minimum wages published on 13 March.
Answered by Kelly Tolhurst
The National Living Wage (NLW) has helped to deliver the fastest wage growth for the lowest paid in 20 years, and in April 2019, alongside the National Minimum Wage (NMW) rates, will increase above inflation and average earnings. Collectively, over 2.1 million workers will benefit from the minimum wage rates. In Glasgow South, there are an estimated 1,600 workers currently benefiting from the minimum wages.
At Spring Statement 2019, the Government announced an important step in its aspiration to end low pay, by appointing Professor Arindrajit Dube to undertake a review of the latest international evidence on minimum wages. The review will be considering the implications of this international evidence for UK minimum wage policy.
The Government is clear that National Minimum Wage legislation already protects workers by proscribing unpaid work trials that are excessive and not part of a genuine recruitment process. The Government published new guidance in December 2018 that clarifies the rights of workers and the responsibilities of employers.
Asked by: Stewart Malcolm McDonald (Scottish National Party - Glasgow South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the review of the international evidence on the impacts of minimum wages, published on 13 March 2019, if he will make it his Department's policy to ban unpaid work trials at the outset of employment.
Answered by Kelly Tolhurst
The National Living Wage (NLW) has helped to deliver the fastest wage growth for the lowest paid in 20 years, and in April 2019, alongside the National Minimum Wage (NMW) rates, will increase above inflation and average earnings. Collectively, over 2.1 million workers will benefit from the minimum wage rates. In Glasgow South, there are an estimated 1,600 workers currently benefiting from the minimum wages.
At Spring Statement 2019, the Government announced an important step in its aspiration to end low pay, by appointing Professor Arindrajit Dube to undertake a review of the latest international evidence on minimum wages. The review will be considering the implications of this international evidence for UK minimum wage policy.
The Government is clear that National Minimum Wage legislation already protects workers by proscribing unpaid work trials that are excessive and not part of a genuine recruitment process. The Government published new guidance in December 2018 that clarifies the rights of workers and the responsibilities of employers.
Asked by: Stewart Malcolm McDonald (Scottish National Party - Glasgow South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what his Department's definition is of the word excessive in relation to the number of hours people are asked to complete for unpaid work trials.
Answered by Kelly Tolhurst
Individuals on work trials who are asked to complete work for an employer are likely to be classed as ‘workers’ and are entitled to the National Minimum Wage. Work trials may only be unpaid if they are part of a genuine recruitment exercise. An unpaid trial work period lasting a few hours may be reasonable and legal, but an unpaid work trial lasting more than one day is probably excessive and therefore illegal in all but exceptional circumstances. The Government has consulted with employers and trade unions on how to ensure greater clarity and better practice over work trials. We have just finalised new guidance that will be published in due course.
Asked by: Stewart Malcolm McDonald (Scottish National Party - Glasgow South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he is taking steps to ensure that the November 2018 Government document Calculating the Minimum Wage includes guidance for people who are asked to complete unpaid work trials at the outset of employment.
Answered by Kelly Tolhurst
Individuals on work trials who are asked to complete work for an employer are likely to be classed as ‘workers’ and are entitled to the National Minimum Wage. Work trials may only be unpaid if they are part of a genuine recruitment exercise. An unpaid trial work period lasting a few hours may be reasonable and legal, but an unpaid work trial lasting more than one day is probably excessive and therefore illegal in all but exceptional circumstances. The Government has consulted with employers and trade unions on how to ensure greater clarity and better practice over work trials. We have just finalised new guidance that will be published in due course.
Asked by: Stewart Malcolm McDonald (Scottish National Party - Glasgow South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy to ensure that people who are asked to complete work trials at the outset of employment are classed as workers.
Answered by Kelly Tolhurst
Individuals on work trials who are asked to complete work for an employer are likely to be classed as ‘workers’ and are entitled to the National Minimum Wage. Work trials may only be unpaid if they are part of a genuine recruitment exercise. An unpaid trial work period lasting a few hours may be reasonable and legal, but an unpaid work trial lasting more than one day is probably excessive and therefore illegal in all but exceptional circumstances. The Government has consulted with employers and trade unions on how to ensure greater clarity and better practice over work trials. We have just finalised new guidance that will be published in due course.
Asked by: Stewart Malcolm McDonald (Scottish National Party - Glasgow South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to his Department's press release entitled Record 22,400 minimum wage workers to receive millions in backpay, what proportion of those 22,400 workers received backpay as a result of unpaid work trials.
Answered by Andrew Griffiths
Information on the most common reasons for underpayment were given in the press notice referred to. Information is not held centrally on the number of workers underpaid through exploitative work trials. In many HMRC investigations a variety of risks of underpayment will exist with a single employer.
Any worker who thinks they may have been underpaid the National Minimum Wage should contact Acas. The Government will bring forward new measures to address exploitative unpaid work trials shortly.
Asked by: Stewart Malcolm McDonald (Scottish National Party - Glasgow South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that people who have not been paid the national minimum wage are able to access HMRC's online complaints system.
Answered by Andrew Griffiths
The Government is clear that anyone who is entitled to the National Minimum Wage (NMW) should receive it. We have increased the HMRC enforcement budget to £26.3 million for 2018/19, up from £13 million in 2015/16.
Since the introduction of an online complaints system in January 2017, there has been a significant increase in the number of NMW complaints received by HMRC. BEIS has been running a UK-wide campaign to raise awareness of the NMW and to encourage individuals who may have been underpaid to make a complaint. Individuals can also call the ACAS helpline (on 0300 123 1100) for free and confidential advice, and to make a complaint.
Asked by: Stewart Malcolm McDonald (Scottish National Party - Glasgow South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department holds information on how many hon. Members have been contacted by HMRC for advertising unpaid work in the last 12 months.
Answered by Andrew Griffiths
HMRC routinely contacts employers who advertise unpaid internships, signposting them to National Minimum Wage guidance to help ensure they are compliant. It has contacted over 1,000 employers in this way over the last year. We do not publish the names of employers involved in HMRC compliance or investigation activities, except where they have been found to be in breach of the law and have repaid all monies owed to workers.
Asked by: Stewart Malcolm McDonald (Scottish National Party - Glasgow South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 7 June 2018 to Question 149681 on Unpaid Work, when his Department plans to publish guidance for people who have undertaken unpaid work trials.
Answered by Andrew Griffiths
The Government is clear that exploitative unpaid work trials are unacceptable, and will take action against employers misusing them. HM Revenue and Customers respond to 100% of worker complaints received.
Short unpaid work trials may be acceptable when they are part of a genuine recruitment exercise. On 13 June I met trade unions, employers and lawyers to seek views on a draft of new Government guidance on this subject. The Government plans to come forward with further detail shortly.
Asked by: Stewart Malcolm McDonald (Scottish National Party - Glasgow South)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what risk assessment his Department has made of the involvement of foreign companies in the delivery of the UK's new nuclear programme.
Answered by Lord Harrington of Watford
The Government keeps issues of risk around foreign ownership in the nuclear sector under continuous review. In September 2016 we announced reforms to the ownership and control of critical infrastructure to ensure that the full implications of foreign ownership are scrutinised for the purposes of national security. Secondary legislation to strengthen the Government’s powers to scrutinise mergers and takeovers that may raise national security concerns came into force in June 2018 and we are currently considering responses to our consultation regarding long term reforms.