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Unpaid Work Trials

29 March 2023

Lead MP

Stewart McDonald
Glasgow South
SNP

Responding Minister

Kevin Hollinrake

Tags

Crime & Law EnforcementTaxationEmploymentNorthern Ireland
Word Count: 8801
Other Contributors: 3

At a Glance

Stewart McDonald raised concerns about unpaid work trials in Westminster Hall. A government minister responded.

Key Requests to Government:

I urge the Government to amend the National Minimum Wage Act 1998 to outlaw unpaid work trials, ensuring fair pay and preventing exploitation of job seekers.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

Glasgow South
Opened the debate
I am concerned about the practice of unpaid work trials, which contributes to £3 billion in missing wages across the UK. These trials often involve applicants working for hours without payment and sometimes even for jobs that do not exist, exploiting them during busy periods such as Christmas trading. The study by Middlesex University and the Trust for London shows that this practice is widespread and morally fraudulent.

Government Response

Kevin Hollinrake
Government Response
It is a pleasure to speak with you in the Chair, Mr Hollobone. I congratulate the hon. Member for Glasgow South on introducing this important debate, and on his persistence. Broadly, I agree with the points he made about unpaid work trials being scandalous practices. The Government introduced the largest ever increase to the national living wage at 9.7%, which applies from Saturday, benefiting over 2.9 million people across the country including 210,000 in Scotland and 160,000 in Northern Ireland. Most businesses are decent and do not engage in these practices. The Government supports a number of measures to strengthen workers' rights, such as ensuring workers receive full allocation of tips and service charges, protecting neonatal care for new parents with difficulties, entitling everyone to at least a week's carers' leave, and ensuring redundancy protections pre and post maternity. The minister clarified that the extent of the problem of unpaid work trials is not clear, describing rogue employers as those who abuse the system. He stated that anybody defined as a worker should receive the national living wage and updated guidance in 2018 to clarify the time allowed for work trials. Employment tribunals have bases on which to make judgments about these issues. The minister highlighted six criteria applied to unpaid work trials, including length of time (no longer than a day), observation requirements, nature of the work, and value to the employer. He noted that there are legitimate reasons for having unpaid work trials but no intention to legislate further in this area. HMRC's enforcement capability has been doubled since 2015-16, with nearly £28 million spent annually on ensuring employers meet their legal responsibilities. In 2021, HMRC returned over £6.7 million in arrears to more than 155,000 workers and issued fines totalling more than £14 million to businesses that failed to pay the minimum wage. Since 2015, over £100 million has been ordered for repayment to more than 1 million workers. The minister stated that the next naming and shaming list will be released very shortly.
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About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.