News

Ask the expert

Your legal questions are answered by Christine Betts, senior lawyer, schools and childcare team, Veale Wasbrough Lawyers Q. We recently had an unexpected visit from a National Minimum Wage inspector who went through our accounts back to 2001 to check that we had always paid our staff at least the legal minimum. We had! We were shocked, however, when the inspector argued that we should also be paying students on placements the minimum wage. We argued that they were still learning, not really doing a full job, and so not entitled to the NMW. He seemed to accept this argument reluctantly, but who is right? A. The basic starting point is that the National Minimum Wage (NMW) applies to all workers. As from 1 October 2004 the NMW is 4.85 per hour for workers over 21, though that is set to rise to Pounds 5.05 in October 2005 and to 5.35 next year. The rate for workers aged between 18 and 21 is 4.10, but that too will rise next October, to 4.25. For workers under 18 the minimum hourly rate is 3, and the Government has said that there will be no change to this rate next year.
Your legal questions are answered by Christine Betts, senior lawyer, schools and childcare team, Veale Wasbrough Lawyers Q. We recently had an unexpected visit from a National Minimum Wage inspector who went through our accounts back to 2001 to check that we had always paid our staff at least the legal minimum. We had! We were shocked, however, when the inspector argued that we should also be paying students on placements the minimum wage. We argued that they were still learning, not really doing a full job, and so not entitled to the NMW. He seemed to accept this argument reluctantly, but who is right?

A. The basic starting point is that the National Minimum Wage (NMW) applies to all workers. As from 1 October 2004 the NMW is 4.85 per hour for workers over 21, though that is set to rise to 5.05 in October 2005 and to 5.35 next year. The rate for workers aged between 18 and 21 is Pounds 4.10, but that too will rise next October, to 4.25. For workers under 18 the minimum hourly rate is 3, and the Government has said that there will be no change to this rate next year.

However, students who are doing work experience as part of a higher education course, where the placement is for a year or less, are not entitled to receive the national minimum wage.

This exemption does not apply where a student is simply working to fund their studies or working during a 'gap year' between school and higher education. In both these cases, the national minimum wage applies.

* The advice given in this column is for guidance only. Nursery World readers should not place reliance upon it or take action without obtaining further advice relating to their specific and individual circumstances.

Contacts

Christine Betts

* Veale Wasbrough Lawyers, Orchard Court, Orchard Lane, Bristol BS1 5WS, tel: 0117 925 2020, fax: 0117 925 2025, e-mail: cbetts@vwl.co.uk, website: www.vwl.co.uk

Nursery World

* If you have a question that you would like answered, write to Nursery World, 66-68 East Smithfield, London E1W 1BX, fax: 020 7782 3131 or e-mail: ruth.thomson@nurseryworld.co.uk. All letters will be treated in the strictest confidence but only published questions will be answered.



Nursery World Jobs

Senior Nursery Manager

Bournemouth, Dorset

Early Years Adviser

Sutton, London (Greater)

Nursery Manager

Norwich, Norfolk

Nursery Manager

Poole, Dorset