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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
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.
Chris Stephens
SNP
Glasgow South
Suggested that if the Government were to put forward an employment Bill as promised for six years, it would allow both MPs to table amendments to address issues related to unpaid work trials. Called for the UK Government to ban exploitative unpaid work trials and protect workers, criticized the delay in bringing forward an employment Bill since 2017, highlighted the blocking of MPs on social media by Mooboo Tea Company, and raised concerns about enforcement issues and vacancies in the national minimum wage compliance unit. Asked the Minister about how he intends to enforce legislation around unpaid work trials beyond just providing a right to request, emphasizing the need for stronger enforcement measures. The Minister's statements seem confusing as he says both data collection is not necessary and that legislation might be avoided. Before deciding on legislation, shouldn't the Government investigate the extent of unpaid work trials?
Jim Shannon
DUP
Strangford
Mr Shannon discussed the prevalence of unpaid work trials in industries like hospitality, highlighting how these practices can take advantage of young workers. He shared an anecdote about a young girl who was required to purchase specific clothing for her trial shift and was not compensated, despite contributing to the company's revenue during that period. Some responses have been positive, mentioning Carer's Leave Bill. However, a person cannot take a case to tribunal if they haven't worked long enough, making tribunals inaccessible for many and asking about uniform issues.
Justin Madders
Lab
Ellesmere Port and Bromborough
Discussed the need for proper enforcement of UK employment law regarding unpaid trial shifts, questioning the effectiveness of current guidance. Raised concerns about jobseeker exploitation, especially among young people who lack union support or legal expertise to pursue claims. Highlighted a personal example involving his son's experience with an exploitative trial shift offer and called for better protection and clarity in employment rights.
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.