Employer paying under new minimum wage?

Reue

Im on an apprenticeship scheme which pays £85 a week and includes (as stated in my contract) free accomodation and free 3 meals a day.

As I understand, the new apprenticeship minimum wage has now been raised to £95 a week. My employer is claiming that they are actually paying me £116.22 a week but deducting £31.22 per week for accomodation (resulting in the original £85 a week) and so they are saying they dont need to raise my final weekly pay as i am 'apparently' paid this £116.22.

MY question is are they allowed to bypass the apprenticeship minimum wage in this way? Especially when my contract states that I will be recieveing free accomodation rather then having the cost of it deducted from my pay.

Many thanks.

Reue

Well ive certainly not heard of any notice theyve given yet!

taylor21_2

I can't post a link but try nmwadvice . co . uk


In order to encourage training and development:

• Most apprentices are exempt from the minimum wage until they reach the age of 19
• Apprentices who start with an employer after the age of 19 qualify for the minimum wage after 12 month exemption period
• For apprenticeship exemptions to apply an apprenticeship contract must be in place with appropriate training provided
• The helpline can provide information as to which apprentices and trainees are exempt and how long the exemption may apply.

What About “Benefits in Kind” / accommodation etc?

There are strict rules about benefits in kind and the minimum wage.
Some jobs provide benefits as well as payment in wages, such as free meals and accommodation or discounts off company products.
The only benefit that an employer can count against national minimum wage is accommodation.
There are special rules for calculating the value of your accommodation which counts towards the national minimum wage.
Currently the daily rate of the accommodation offset is £4.46 for each day that accommodation is provided (£31.22 per week).

olias

taylor21 wrote: »

I can't post a link but try nmwadvice . co . uk



In order to encourage training and development:

• Most apprentices are exempt from the minimum wage until they reach the age of 19
• Apprentices who start with an employer after the age of 19 qualify for the minimum wage after 12 month exemption period
• For apprenticeship exemptions to apply an apprenticeship contract must be in place with appropriate training provided
• The helpline can provide information as to which apprentices and trainees are exempt and how long the exemption may apply.

What About “Benefits in Kind” / accommodation etc?

There are strict rules about benefits in kind and the minimum wage.
Some jobs provide benefits as well as payment in wages, such as free meals and accommodation or discounts off company products.
The only benefit that an employer can count against national minimum wage is accommodation.
There are special rules for calculating the value of your accommodation which counts towards the national minimum wage.
Currently the daily rate of the accommodation offset is £4.46 for each day that accommodation is provided (£31.22 per week).

Sounds to me like they are following the book by the letter in order to pay the OP the minimum they can possibly get away with. Lets hope the training they are getting makes up for it and they are not using the OP as a means of cheap labour. Cynical....me?:rolleyes:

Olias

paulwf

olias wrote: »

Sounds to me like they are following the book by the letter in order to pay the OP the minimum they can possibly get away with. Lets hope the training they are getting makes up for it and they are not using the OP as a means of cheap labour. Cynical....me?:rolleyes:

Olias

Although they aren't paying a lot that £85 (less any deductions) is basically spending money. There are a lot of people in full time min wage work with a lot less left over at the end of the week once meals and accommodation have been covered.

taylor21_2

My partner started as an apprentice 16 yrs ago, he has been with that company ever since and has worked his way up, he now earns an excellent salary and is one of a handful of people that I know really enjoys his job. Short term pain for long term gain :-)

Reue

olias wrote: »

Sounds to me like they are following the book by the letter in order to pay the OP the minimum they can possibly get away with. Lets hope the training they are getting makes up for it and they are not using the OP as a means of cheap labour. Cynical....me?:rolleyes:

Olias

It's basically a summer season job that they get alot of gap yearers and uni students on holiday for.

Are they still allowed to make this deduction if theres no mention of it in my contract?

98jdougl

what does it say regarding accommodation in the contract?

jackieb

My son had to stay in digs, Monday to Friday, when he started out on his apprenticeship scheme. He got his accomodation and meals paid for - and got £300+ a month. He thought he was well off. These places are hard to come by so he thought he was lucky. It's £300 spending money. He still only spends £400 a month and he's making good wages now.

If it's anything like the scheme he was on it'll be well worth it. He made £16k his first year after his college placement (which was 18 months), and has gradually increased and is now at £42k. He's now 25yo and a trainee, but his final salary will be £55k - although a former workmate left and is now making £80k tax free.

What type of work are you doing?

Reue

98jdougl wrote: »

what does it say regarding accommodation in the contract?

"You will be provided with free accomodation".

Reue

jackieb wrote: »

What type of work are you doing?

Working for a children's outdoor activity centre. We do school and individual adventure holidays, stuff like climbing kayaking etc.