Employers and interns get clarity on minimum wage

Guidance has been published providing greater clarity for businesses who offer work experience, placements and internships.

The updated guidance from Business Link and DirectGov includes advice on the payment of the National Minimum Wage (NMW) for work experience staff and interns, and clarifies when someone is entitled to this payment. The guidance also includes a new worker checklist for employers and examples of case studies, which aims to make sure that those who are entitled to the NMW receive it.

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.

The Government has also published its evidence to the Low Pay Commission for their 2012 NMW. The Low Pay Commission will report back in early 2012 with their findings and their recommendations for the NMW ratings.