A CIPD report out this week calls for a new National Minimum Wage ‘training rate’ of £2.50 to be applied to all internships. In response, the TUC General Secretary Brendan Barber commented “Although this proposal is well-meaning, in practice it would represent a significant watering-down of the current rights for most interns. The vast majority already have the right to be paid the minimum wage in full, and the problem has been in getting employers to face up to their responsibilities. What is really needed is simply better awareness and enforcement of the existing law.”
CIPD assert that interns and apprentices share considerable similarities, warranting a common wage entitlement. But we would question this. Apprenticeships are governed by regulations and vocational frameworks that guarantee a certain level of quality (or at least consistency) and lead to a recognised qualification. Internships do not, they don’t even exist in the law and their design and delivery are governed exclusively by the whim of the employer.
The Low Pay Commission introduced a training rate in the early days of the National Minimum Wage. It was not widely used but when it was it was often abused, with employers taking people on a reduced rate but offering little in terms of training. Under these proposals, we see potential for similar sharp practices that a voluntary code of practice would fail to address. Its telling to note that the LPC shelved the training rate some time ago.
Go to the Rights for Interns site for more details.
According to the People Management site....
The suggested rate of £2.50 is the same as a newly announced government rate for apprentices. This was announced at the same time as increases in the national minimum wage. The adult minimum will increase by 2 per cent in October to £5.93 an hour. Workers aged between 18 and 20 will receive a 9p increase to £4.92, while those aged 16 or 17 will get £3.64 – a rise of 7p.
It seems like one step forward and two steps back with a reduction in payment. I agree with the TUC that the alignment of internships and apprenticeships is not a valid one and the start, or even continuation, of a slippery slope.
Folks, another reason to join a union to have someone who can protect and fight for your interests.
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