The Department of Business, Innovation and Skills (“BIS”) has made two new employment law announcements this month. The first one relates to the reform of the national minimum wage. The government is to propose to the Low Pay Commission that there should be a single national minimum wage rate for apprentices and 16-17 year olds, with the apprenticeship rate rising by just over £1 to match the rate for 16-17 year olds.
The second announcement relates to employment status. The government has launched a “wide-ranging employment review to help clarify and potentially strengthen the employment status of workers”. BIS said:
“Officials at the Department for Business, Innovation and Skills will today start the process of determining how clear the current employment framework is, what the options are to extend some employment rights to more people and whether there is scope to streamline this very complex area of employment law, thus simplifying and clarifying rights for both employers and employees.”
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Both of these announcements are not too much of a surprise, as the government has been talking about them for a while. Employment Associate Paul Burton says, “There has been a push for more apprenticeships being taken up and the government hopes that an increase in the minimum wage for them will help. On the employment status front, the announcement comes alongside the consultation that is currently taking place on zero hours contracts.” It seems the government, while weakening employee rights on the one hand, is looking to strengthen those that are applicable for workers. It is correct that this area is a complex one and any simplification will be welcome.
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