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Employment (Minimum Wage) (Amendment No. 11) (Jersey) Regulations 201- (P.157/2014)

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 17 October 2014:

Decision Reference: MD-S-2014-0129

Decision Summary Title :

DS 2015 Min Wage Regs amendment lodged

Date of Decision Summary:

17 October 2014

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 2015 Min Wage Regs amendment lodged

Date of Written Report:

17 October 2014

Written Report Author:

Policy Principal

Written Report :

Public or Exempt?

 

Public

Subject: Draft Employment (Minimum Wage) (Amendment No. 11) (Jersey) Regulations 201-

Decision(s): The Minister decided to lodge ‘au Greffe’ the Draft Employment (Minimum Wage) (Amendment No. 11) (Jersey) Regulations 201-.

Reason(s) for Decision: Following a minimum wage review in 2014, the Employment Forum publicised its recommendation to the Minister for Social Security on 23 September 2014. The Minister presented a Report to the States (R.141/2014) notifying that he had accepted the Forum’s recommendations (MD-S-2014-0126) and then requested law drafting (MD-S-2014-0127).

 

The Minister proposes to amend the Employment (Minimum Wage) (Jersey) Regulations 2004 in accordance with the Forum’s recommendations, effective from 1 April 2015. The purpose of the proposed amendment is to increase the maximum amounts that may be counted towards minimum wage or trainee rate pay where an employer provides living accommodation, or living accommodation with food, to an employee.

 

A Ministerial Order has been prepared that would increase the minimum wage and trainee rates, in accordance with the Forum’s recommendations, from 1 April 2015.

Resource Implications: There are no financial or manpower implications.

 

Action required: Policy Principal to request the Greffier of the States to arrange to lodge the Draft Regulations ‘au Greffe’ on 28 October, to be listed for the States sitting of 9 December 2014.

Signature:

 

 

Position:

Minister

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

Employment (Minimum Wage) (Amendment No. 11) (Jersey) Regulations 201-

 

ACCOMPANYING REPORT

 

Draft Employment (Minimum Wage) (Amendment No. 11) (Jersey) Regulations 201-

 

The independent consultation body, the Employment Forum (the ‘Forum’), consulted on the minimum wage during the period 16 June to 18 August 2014 and publicised its recommendation to the Minister for Social Security (the ‘Minister’) on 23 September 2014.

 

The Minister presented a Report to the States which included the Forum’s recommendation and notified the States of his decision (R.141/2014). The Minister accepted the Forum’s recommendation for increases to apply from 1 April 2015, as shown in the table below.

 

 

2014

2015

Minimum Wage (per hour)

£6.63

£6.78

Trainee Rate Year 1 (per hour)

£4.97

£5.09

Trainee Rate Year 2 (per hour)

£5.80

£5.93

Maximum weekly offset against minimum wage for accommodation

£72.54

£74.21

Maximum weekly offset against minimum wage for accommodation & food

£96.72

£98.94

Maximum weekly offset against trainee rates for accommodation

£54.41

£55.66

Maximum weekly offset against trainee rates for accommodation & food

£72.54

£74.21

 

 

Regulations relating to the minimum wage may be made under Part 4 of the Employment (Jersey) Law 2003. The Employment (Minimum Wage) (Jersey) Regulations 2004 (the ‘Regulations’) ensure that an employer’s ability to offset the cost or value of benefits in kind against the minimum wage is limited to living accommodation, or living accommodation with three meals each day. The Regulations also set a maximum value for those benefits in kind for the purpose of calculating whether the appropriate minimum wage or trainee rate has been paid.

 

In accordance with the Forum’s recommendations, the Minister proposes to amend Regulation 9 of the Regulations so that the maximum values are increased proportionately to the proposed increase in the minimum wage and trainee rates from 1 April 2015.

 

Where an employee is paid the minimum wage, the maximum values that may be attributed to the two benefits in kind for the purpose of establishing whether the minimum wage has been paid would increase by 2.3 percent.

 

  • Where the employer provides food and living accommodation and pays the minimum wage, the maximum offset would be £98.94 per week.

 

  • Where the employer provides living accommodation and pays the minimum wage, the maximum offset would be £74.21 per week.

 

The maximum values that may be attributed to the two benefits in kind for the purpose of establishing whether the relevant trainee rate has been paid would be set at 75 percent of the maximum amounts that may be offset against minimum wage pay.

 

  • Where the employer provides food and living accommodation and pays either of the two trainee rates, the maximum offset would be £74.21 per week.

 

  • Where the employer provides living accommodation and pays either of the two trainee rates, the maximum offset would be £55.66 per week.

 

 

The Minister intends to amend the Employment (Minimum Wage) (Jersey) Order 2007 to increase the minimum wage and trainee rates as follows from 1 April 2015;

 

  1. The hourly minimum wage rate would increase from £6.63 to £6.78.

 

  1. The hourly minimum wage rate for a first year trainee would increase from £4.97 to £5.09.

 

  1. The hourly minimum wage rate for a second year trainee would increase from £5.80 to £5.93.

 

There are no financial or manpower implications arising from these draft Regulations.

 

 

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