Employment (Minimum Wage) (Amendment No. 6) (Jersey) Order 2013

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision 22 March 2013:

Decision Reference: MD-S-2013-0022
Decision Summary Title :	Minimum Wage Order 2013		Date of Decision Summary:	20 March 2013
Decision Summary Author:	Policy Principal		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Minimum Wage Order 2013		Date of Written Report:	20 March 2013
Written Report Author:	Policy Principal		Written Report : Public or Exempt?	Public
Subject: Employment (Minimum Wage) (Amendment No. 6) (Jersey) Order 2013
Decision(s): The Minister made the Employment (Minimum Wage) (Amendment No. 6) (Jersey) Order 2013.
Reason(s) for Decision: Following the Employment Forum’s review of the minimum wage in 2012, the Minister for Social Security accepted the Forum’s recommendations on 30 November 2012. In accordance with the Forum’s recommendations, the Minister made the Employment (Minimum Wage) (Amendment No. 6) (Jersey) Order 2013 to set the following minimum hourly rates of pay from 1 April 2013; A minimum wage of £6.53 per hour. A first year trainee rate of £4.90 per hour. A new second year trainee rate of £5.71 per hour. The Employment (Minimum Wage) (Amendment No. 9) (Jersey) Regulations 2013 were adopted by the States on 19 March 2013. The Regulations will, from 1 April 2013, increase the maximum values that may be counted towards minimum wage or trainee rate pay where accommodation, or accommodation with food, is provided to an employee, and will extend the period during which an employee may receive a trainee rate from a maximum of one year to a maximum of two years.
Resource Implications: There are no financial or manpower implications.
Action required: Policy Principal to notify the Greffier of the States and the Law Draftsman that the Order has been made so that it may be notified to the States, and forward the signed and sealed Order immediately to the States Greffe for publication and archiving.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Employment (Minimum Wage) (Amendment No. 6) (Jersey) Order 2013

Accompanying report for the Employment (Minimum Wage) (Amendment No. 6) (Jersey) Order 2013

Introduction

The independent consultation body, the Employment Forum (the ‘Forum’), conducted its annual review of the minimum wage during the period June to August 2012 and publicised its recommendation in October 2012. The Forum recommended that the minimum wage and associated rates should be revised from 1 April 2013, as follows;

	2012	2013
Minimum Wage (per hour)	£6.48	£6.53
Trainee Rate (per hour), First year	£4.86	£4.90
Trainee Rate (per hour), Second year	NA	£5.71
Maximum weekly offset against minimum wage for accommodation	£70.94	£71.47
Maximum weekly offset against minimum wage for accommodation & food	£94.58	£95.29
Maximum weekly offset against trainee rates for accommodation	£53.21	£53.60
Maximum weekly offset against trainee rates for accommodation & food	£70.94	£71.47

The Minister for Social Security accepted the Forum’s recommendations and gives effect to the recommended minimum wage and trainee rates by amending the Employment (Minimum Wage) (Jersey) Order, 2007, effective from 1 April 2013.

Currently, the trainee rate may be paid for a maximum of one year. From 1 April 2013, an employer may pay a trainee rate for a maximum of two years where an employee is undergoing approved training in a new job.

First year of training - £4.90 per hour may be paid for a total of one year, whilst an employee is undergoing approved training at any time within the first two years of a new job.

Second year of training - £5.71 per hour may be paid where an employee has already undertaken approved training for a total of one year in a new job and whilst that employee continues to undergo approved training for up to one further year in that job, up to a maximum of two years.

The States adopted the Employment (Minimum Wage) (Amendment No. 9) (Jersey) Regulations, 2013, on 19 March 2013. The effect of the amendment is, from 1 April 2013, to;

Increase the maximum amounts that may be counted towards minimum wage or trainee rate pay where living accommodation, or living accommodation with food, is provided to an employee.

Extend the period during which an employee may be ‘a trainee’ (whilst they are undertaking approved training) from a maximum of one year to a maximum of two years.

Provide that training is ‘approved’ by the Minister, rather than being ‘accredited’ by the Minister. The Minister will issue a Ministerial decision that describes approved training. This will include a requirement for formal training that has been agreed in writing by both parties before employment commences, that has a defined structure and objectives that relate to the work performance of the employee in their particular job, and training outcomes that are assessed and documented.

There are no financial or manpower implications arising from this Order.