Employment (Minimum Wage) ( Amendment) ( Jersey )Order

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A decision made (17.02.06) to make the Employment (Minimum Wage) (Amendment) (Jersey) Order 200-

Subject:	Employment (Minimum Wage) (Amendment) (Jersey) Order 200-
Decision Reference:	MD-S-2006-0021	Exempt clause(s):		n/a
Type of Report (oral or written):	Written	Person Giving Report (if oral):		n/a
Telephone or e-mail Meeting?	n/a	Report File ref:		L:\General Information\Workgroups\Policy\Employment\Ministerial decisions\Report Minimum Wage Order 14Feb06
Written Report – Title:	Employment (Minimum Wage) (Amendment) (Jersey) Order 200-	Written report – Author:		Kate Morel, Policy Principal
Decision(s): To make the Employment (Minimum Wage) (Amendment) (Jersey) Order 200-.
Reason(s) for decision: The Order increases the Minimum Wage and Trainee rates by 3%, following States approval on 14th February 2006 of the Employment (Minimum Wage) (Jersey) Regulations 2004, which increase the level of offsets that may be made against the Minimum Wage by 3%.
Action required: Notify the Greffe and the draftsman that the Order has been made and forward the signed and sealed Order to the Greffe for archiving.
Signature: (Minister/ Assistant Minister)			Date of Decision:

Employment (Minimum Wage) ( Amendment) ( Jersey )Order

Ministerial Decision Report

Employment (Minimum Wage) (Amendment) (Jersey) Order 200-

Introduction

The Minister’s Report and Proposition for the draft Employment (Minimum Wage) (Amendment) (Jersey) Regulations 200- states that it was intended to make an Order setting the minimum wage and trainee rate, subject to States approval of the Regulations, which set the rates of offset against the minimum wage.

Background

The Minimum Wage has been in force since 1st July 2005. The Employment Forum consulted during October 2005 and recommended a 3% increase to the minimum wage and the trainee rate, and also that the two offsets should be increased by the same percentage to avoid distortion effects that would occur if the rates were increased in isolation.

The offsets against the minimum wage are made by Regulation and set the maximum value that may be attributed to the benefits in kind for the purpose of establishing whether the minimum wage has been paid. The following rates were approved by the States on 14th February 2006 and will apply from 1st April 2006:

 For the provision of accommodation to the employee, the maximum weekly offset against the minimum wage is £57.32.

 For the provision of both accommodation and food to the employee, the maximum weekly offset against the minimum wage is £76.43.

Following States approval of the Regulations, the Social Security Minister proposes to amend the Order made under Article 16(3) of the Employment (Jersey) Law, 2003, to apply the following rates from 1st April 2006;

 An hourly minimum wage rate of £5.24, to apply to all employees over school leaving age, except when the trainee rate is paid and ‘special classes of person’, as detailed in articles 36 to 43 of the Employment Law.

 An hourly trainee minimum wage rate of £3.94 for an employee of any 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.