Employment (Minimum Wage) (Amendment No. 7) (Jersey) Order 2013

Information about the publication of Ministerial Decisions

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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
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A decision made 25 October 2013:

Decision Reference: MD-S-2013-0105
Decision Summary Title :	Make Minimum Wage Order 2014		Date of Decision Summary:	22 October 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 :	Make Minimum Wage Order 2014		Date of Written Report:	22 October 2013
Written Report Author:	Policy Principal		Written Report : Public or Exempt?	Public
Subject: Employment (Minimum Wage) (Amendment No. 7) (Jersey) Order 2013
Decision(s): The Minister made the Employment (Minimum Wage) (Amendment No. 7) (Jersey) Order 2013.
Reason(s) for Decision: Following the Employment Forum’s review of the minimum wage in 2013, the Minister for Social Security presented a Report to the States on 24 September 2013 notifying that he had accepted the Forum’s recommendations (MD-S-2013-0093) and then requested law drafting (MD-S-2013-0094). In accordance with the Forum’s recommendations, the Minister made the Employment (Minimum Wage) (Amendment No. 7) (Jersey) Order 2013 to increase the minimum hourly rates of pay from 1 April 2014, as follows; A minimum wage of £6.63 per hour. A first year trainee rate of £4.97 per hour. A second year trainee rate of £5.80 per hour. The Employment (Minimum Wage) (Amendment No. 10) (Jersey) Regulations 2013 were lodged ‘au Greffe’ by the Minister on 22 October (MD-S-2013-0103) and listed for States debate on 3 December 2013 (P.131/2013). The Regulations would, from 1 April 2014, 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.
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. 7) (Jersey) Order 2013

Accompanying report for the Employment (Minimum Wage) (Amendment No. 7) (Jersey) Order 2013

The independent consultation body, the Employment Forum (the ‘Forum’), consulted on the minimum wage during the period 14 June to 9 August 2013 and publicised its recommendation to the Minister for Social Security (the ‘Minister’) on 23 September 2013.

The Minister accepted the Forum’s recommendation for increases to apply from 1 April 2014, as shown in Table 1. The Minister presented a Report to the States on 24 September 2013 which included the Forum’s recommendation and notified the States of his decision (R.116/2013).

	2013	2014
Minimum Wage (per hour)	£6.53	£6.63
Trainee Rate Year 1 (per hour)	£4.90	£4.97
Trainee Rate Year 2 (per hour)	£5.71	£5.80
Maximum weekly offset against minimum wage for accommodation	£71.47	£72.54
Maximum weekly offset against minimum wage for accommodation & food	£95.29	£96.72
Maximum weekly offset against trainee rates for accommodation	£53.60	£54.41
Maximum weekly offset against trainee rates for accommodation & food	£71.47	£72.54

To give effect to the recommended increases to the minimum wage and trainee rates, the Employment (Minimum Wage) (Jersey) Order, 2007, will be amended as of 1 April 2014, to make the following changes;

The minimum wage would increase from £6.53 to £6.63 per hour.

The minimum hourly rate for a trainee (except as described in point 3) would increase from £4.90 to £4.97. This trainee rate 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.

The minimum hourly rate for a trainee who has completed 12 months’ approved training in a job would increase from £5.71 to £5.80. This trainee rate 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 Minister also proposes to proportionately 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. Subject to the States adopting the Employment (Minimum Wage) (Amendment No. 10) (Jersey) Regulations on 3 December 2013 (P.131/2013), the maximum amounts will increase from 1 April 2014 in accordance with the Forum’s recommendations.

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