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Minimum wage - trainee rate - request to accumulate periods of training

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made (23/02/2007) regarding: Minimum wage - trainee rate - request to accumulate periods of training.

Subject:

Minimum wage – trainee rate – request to accumulate periods of training

Decision Reference:

MD-S-2007-0014

Exempt clause(s):

public

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\SD Trainee Rate cumulative 21Feb07

Written report – Title

MINIMUM WAGE - For the purpose of eligibility to pay the trainee rate, consider a request from an employer for the accreditation of cumulative periods of training, up to a total period of one year.

Written report – Author

(name and job title)

Kate Morel, Policy Principal

Decision(s):

The Minister rejected a request for accreditation of the method by which an employer wishes to provide training to employees; over a cumulative series of short term contracts, for a maximum total duration of one year.

Reason(s) for decision:

The Minister considered a report prepared on the basis of evidence from an employer who employs trainees during the summer season. The “trainee rate” code of practice appears to be met by the employer as there is formal accreditation by a nationally recognised body for the training that employees undertake, the cost of training is covered by the employer and employees are paid for time spent training.

One aspect of the code is not met due to the nature of the work; employees sometimes only work for a few weeks during the summer season, so do not have the opportunity to fully complete their training in that first period of employment. The code of practice provides that the trainee rate may paid for a maximum of one year when in a first job with a new employer, so the trainee rate could not be paid to an employee who continued their training whilst re-employed by the same employer in the following season.

The Minister understood what the employer was trying to achieve, however was not satisfied that the policy should be amended to such an extent.

The Minister did not support the request and re-affirmed the existing policy which is that the trainee rate should be paid for a maximum of one calendar year, not cumulative periods totalling one year, the policy intent being to minimise the possibility for abuse of the trainee rate.

The UK and Isle of Man minimum wage systems also provide that the trainee rate may only be paid to an employee who starts a new job with a new employer, for a maximum period of six months.

Action required:

To advise the employer of the Minister’s the decision, and provide appropriate assistance via the Department and JACS to ensure that the employer meets the requirements of the Law and the code of practice.

Signature:

(Minister/ Assistant Minister)

Date of Decision:

23 February 2007

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