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Minimum Wage 2011: Law Drafting

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A decision made on 15 October 2010 regarding law drafting instructions for changes to the minimum wage for 2011

Decision Reference: MD-S-2010-0067

Decision Summary Title :

Min Wage Drafting

Date of Decision Summary:

15 October 2010

Decision Summary Author:

Policy Principal

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

NA

Written Report

Title :

Min Wage Drafting

Date of Written Report:

15 October 2010

Written Report Author:

Policy Principal

Written Report :

Public or Exempt?

Public

Subject: Minimum Wage 2011 - Law drafting

Decision(s): The Minister decided to request that the Employment (Minimum Wage) (Jersey) Regulations and the Employment (Minimum Wage) (Jersey) Order be amended to reflect the Employment Forum’s minimum wage recommendations for 1 April 2011.

Reason(s) for Decision: The Minister received the Employment Forum’s minimum wage recommendation on 27 September 2010 recommending the following new rates to come into force on 1 April 2011; 

 

1st April 2010

1 April 2011

Minimum Wage

£6.20

£6.32

Trainee Rate

£4.65

£4.74

Accommodation offset

£67.85

£69.21

Accommodation & food offset

£90.46 

£92.27

 
 
 
On 5 October, the Minister announced that he had approved the Forum’s recommendation to increase the minimum wage rate, trainee rate and the maximum levels of offset, as well as approving the recommendation that the legislation should be amended, as in the UK, to prevent employers from using tips, gratuities, service charges and cover charges as part of minimum wage pay. 

The Minister intends to present the amended Regulations to the States as soon as possible.

Resource Implications: There are no financial or manpower implications.

Action required: Policy Principal to submit drafting instructions to the Law Draftsman’s Office.

Signature: 

Position: 

Date Signed:

Date of Decision (If different from Date Signed):

Minimum Wage 2011: Law Drafting

Response to the Employment Forum’s Minimum Wage Recommendation

Issued by the Social Security Minister on 15 October 2010  
 

Background  

The Employment Forum was established in August 1999 and its role and responsibilities were formalised in the Employment (Jersey) Law 2003, which came into force on 1 July 2005. The Forum has a statutory duty to monitor the economic impact of the Minimum Wage and to make recommendations to the Social Security Minister regarding any future increases. If the Minister decides not to accept the Forum’s minimum wage recommendations, he must provide a statement to the States explaining his reasons for that decision.  

In accordance with a States decision in April 2010, the Forum has regard to the States objective that the minimum wage should be set at 45 percent of average earnings within a period of 5 to 15 years, as well as having regard to competitiveness, jobs and the economy, in making its recommendations to the Social Security Minister. 

The Forum consulted with the public on the minimum wage during July to September 2010 and presented its recommendations to the Social Security Minister on 27 September 2010. 

Recommendations  

The Minister accepts the following recommendations of the Employment Forum; 

 

1st April 2010

1 April 2011

Minimum Wage

£6.20

£6.32

Trainee Rate

£4.65

£4.74

Accommodation offset

£67.85

£69.21

Accommodation & food offset

£90.46 

£92.27

 

The Minister considers that the proposed two percent increase provides a fair balance in view of low average earnings growth in 2010.  In the current weak labour market and with increased unemployment, the Minister shares the Forum’s concerns about protecting jobs and guarding against further redundancies.  

 

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