Legal Updates

Employment Law – Employment Opportunities Bill – Minimum Wage

The Employment Opportunities Bill 2008-09 (“the Bill”) has been introduced as a Private Members' Bill to the House of Commons. The purpose of the Bill is to promote:

"More freedom, flexibility and opportunity for jobseekers”.

The Bill received its first reading on the 10th of February 2009. The Bill is intended to create provisions allowing individuals to opt out of the national minimum wage, which is currently £5.73 an hour, and to instead work for £4.82 an hour. It should be noted that £4.82 is equal to the amount that an individual working for minimum receives after paying tax.

It has been argued that this change would provide assistance to businesses that are struggling and would reduce the number of worker who would otherwise potentially be facing unemployment.

The Bill also suggests that asylum seekers should be allowed to take employment positions while they await determinations on their cases. Asylum seekers are currently not permitted to work pending decisions by the Home Office.

It should be noted that Private Member's Bills are often not printed until close to a Second Reading debate. The Bill has been scheduled for a second reading debate on the 16th of October.

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© RT COOPERS, 2009. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.