Apprentices and the minimum wage

The TUC has called on the Government to take urgent action after official figures revealed that three in ten (29%) apprentices were paid less than the legal minimum wage in 2012.

The Apprenticeship Pay Survey, published last week by the Department of Business, Innovation and Skills, shows that the number of apprentices paid below the correct minimum wage rate increased by 45% in 2012.

However, in some industries, such as children’s care, underpayment shot up by two-thirds (65%). In hairdresssing, seven in ten (69%) apprentices were paid less than the legal minimum wage in 2012.

“These findings are shocking and show how many apprentices are currently seen as little more than cheap labour,” said TUC General Secretary Frances O’Grady. “Apprentice exploitation is getting worse across the board. In some industries, such as hairdressing, abuse has become endemic. Ministers must launch investigations now into this abuse.”

O’Grady warned that the survey had revealed a number of systematic failures in the way apprenticeship pay is being monitored. 

“There are plenty of bad bosses who have deliberately cheated young workers. And it appears many businesses do not understand how minimum wage rates work,” he said. “Unless the Government does more to make companies aware of their responsibilities, as well as naming, shaming and persecuting rogue employers, many apprentices will continue to be exploited.”

In its submission to the Low Pay Commission, the TUC has called for the current apprenticeship rate of £2.68 an hour to rise significantly, and for the gap with the 16 - 17 year-old minimum wage youth rate (£3.72) to close.

The TUC also believes there is a strong case for apprentices over the age of 24 to be paid the full adult national minimum wage rate of £6.31 an hour, which would reduce confusion and complexity for employers as well as ensuring more people benefit from a fairer wage.

Contact Employment Law Edinburgh

For specialist employment law advice, click here to complete our enquiry form or call us on 0131 208 3459.