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Tuesday, June 20, 2006

Low Pay Commission

Jill writes

I also received this reply from the Low Pay Comission:

Dear Ms GobleThank you for your email.

The Low Pay Commission advises the Government on all aspects of the minimum wage, including recommending the rates and reviewing different elements of the policy. I am afraid I can't comment on the specific case you raise below as it is the Department of Trade and Industry that is responsible for implementing the minimum wage policy. If you have a query about whether someone should be receiving the minimum wage and a concern that they are being underpaid, there is a minimum wage helpline: tel 0845 6000 678.The Low Pay Commission has looked at the issue of therapeutic activity in its previous reports and is aware that there can be problems where people undertaking therapeutic activity are paid a small amount of money. The Department of Trade and Industry has prepared a detailed guidance note on this area entitled 'The National Minimum Wage and Therapeutic Work', which is available on its website at http://www.dti.gov.uk/employment/pay/national-minimum-wage/Further-Guidance/page21693.html

The guidance explains the intention behind the legislation, which was to protect workers by ensuring that it was not possible for certain categories of people to be paid at a rate less than the minimum wage. This does mean that it is difficult for organisations such as NHS Trusts to continue the practices they may have had prior to the minimum wage i.e. to pay a small amount of money to people undertaking therapeutic activities, as it could imply that these people are workers for minimum wage purposes, and therefore they must be paid the minimum wage. If they genuinely are workers and have a written or implied contract of employment, then they are legally entitled to receive the minimum wage.The Low Pay Commission will be undertaking a consultation exercise on the minimum wage over the summer, inviting views from individuals and organisations who are affected by it. If you would like to contribute a written response to our consultation, please let me know and I would be happy to add your details to our contact list.Thank you for your comments.Joanne WillowsI have also written back to the Minimum Pay Helpline to ask if they can provide more specific information about the garden centre case and how this matter could be taken to tribunal.

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