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Employment (Minimum Wage) (Amendment No. 8) (Jersey) Regulations 201-

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.

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A decision made 26 October 2011:

Decision Reference: MD-S-2011-0083

Decision Summary Title :

DS 2012 Minimum Wage Regulations lodged

Date of Decision Summary:

24 October 2011

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 :

WR 2012 Minimum Wage Regulations

Date of Written Report:

24 October 2011

Written Report Author:

Policy Principal

Written Report :

Public or Exempt?

 

Public

Subject: Employment (Minimum Wage) (Amendment No. 8) (Jersey) Regulations 201-

Decision(s): The Minister decided to lodge the Employment (Minimum Wage) (Amendment No. 8) (Jersey) Regulations 201- to amend the maximum amounts that may be offset against the minimum wage for accommodation and food, effective from 1 April 2012.

Reason(s) for Decision: The Minister had approved the Employment Forum’s recommendation that the maximum amount that an employer may offset against the minimum wage where living accommodation is provided to an employee should be increased to £70.94 per week, or £94.58 per week where both food and living accommodation are provided.  The Minister had also approved the Forum’s recommendation that the maximum value that may be attributed to the offsets where the trainee rate is paid should be 75 percent of the weekly offsets against the minimum wage; £53.21 where living accommodation is provided to an employee and £70.94 per week where both food and living accommodation are provided.

 

The Minister intends that the minimum wage should be increased to £6.48 and the trainee rate should be increased to £4.86 by Ministerial Order, subject to the States adopting the proposed amendment to the Regulations.

Resource Implications: There are no financial or manpower implications.

Action required: Policy Principal to request Greffier of the States to lodge the Proposition for States debate in January 2012.

Signature:

 

 

Position:

Minister

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

Hide report
Employment (Minimum Wage) (Amendment No. 8) (Jersey) Regulations 201-

 

Accompanying report for the Employment (Minimum Wage) (Amendment No. 8) (Jersey) Regulations 201-

 

Introduction

 

Jersey’s minimum wage has been in force since 1 July 2005.  On the basis of the Employment Forum’s latest recommendation, the Social Security Minister proposes this amendment to the Minimum Wage Regulations that would amend the maximum amounts that may be counted towards minimum wage or trainee rate pay where food and living accommodation are provided.

 

Subject to the States approval of this draft amendment, the minimum wage and trainee rate would be increased by Ministerial Order, to be effective from 1 April 2012.

 

Background

 

The independent consultation body, the Employment Forum publicised its minimum wage recommendation on 27 September 2011 (attached at the Appendix) which recommended that the minimum wage and associated rates should be amended from 1 April 2012, as follows;

 

 

2011

2012

Minimum Wage (per hour)

£6.32

£6.48

Trainee Rate (per hour)

£4.74

£4.86

Maximum weekly offset against minimum wage for accommodation

£69.21

£70.94

Maximum weekly offset against minimum wage for accommodation & food

£92.27

£94.58

Maximum weekly offset against trainee rate for accommodation

£69.21

£53.21

Maximum weekly offset against trainee rate for accommodation & food

£92.27

£70.94

 

The Minister approved the Forum’s recommendation on 20 October 2011.

 

 

Offsets against the minimum wage

 

Regulations may be made under Part 4 of the Employment (Jersey) Law 2003 specifying permissible offsets against the minimum wage, requiring that all employees in Jersey are paid at an hourly rate which is equal to or greater than the minimum wage.  The Regulations ensure that the ability to offset benefits in kind against weekly wages is limited only to charges made by the employer for living accommodation, or living accommodation with food.

 

This proposed amendment to the Regulations would increase the maximum value that may be attributed to the two benefits in kind, effective from 1 April 2012, for the purpose of establishing whether the minimum wage has been paid:

 

  • For the provision of accommodation to the employee, the maximum weekly offset against the minimum wage would be £70.94.

 

  • For the provision of both accommodation and food to the employee, the maximum weekly offset against the minimum wage would be £94.58.

 

Offsets against the trainee rate

 

The Minister also accepted the Forum’s recommended change to the maximum value that may be attributed to the offsets where the trainee rate is paid. 

 

This proposed amendment to the Regulations would permit an employer to offset a maximum of 75 percent of the weekly offsets against trainee rate pay from 1 April 2012:

 

  • For the provision of accommodation to the employee, the maximum weekly offset against the trainee rate would be £53.21.

 

  • For the provision of both accommodation and food to the employee, the maximum weekly offset against the minimum wage would be £70.94.

 

 

Minimum wage rates

 

Subject to the States approval of the proposed Regulations, the Social Security Minister proposes that an Order would be made under Article 16(3) of the Employment (Jersey) Law, 2003, to apply the following rates from 1 April 2012;

 

  • An hourly minimum wage of £6.48, to apply to all employees over school leaving age, except when the trainee rate is paid, and ‘special classes of person’, which includes share fishermen, residential members of religious communities, and others as detailed in articles 36 to 43 of the Employment Law.

 

  • An hourly trainee rate of £4.86 which may be paid to an employee over school leaving age, who is undertaking an accredited course of training for a maximum period of one year, when in a new job, with a new employer, by written agreement. 

 

 

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

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