Employers unsure of minimum wage rules

MORE than one in five employers of apprentices in the West Midlands are unsure of the minimum wage rules.

Findings from Learning and Work Institute were revealed after a Government survey showed one in five apprentices across England reported being paid less than the minimum wage they are legally entitled to.

The Government is expanding apprenticeships, aiming for three million by 2020 and introducing an Apprenticeship Levy requiring large firms to invest.

But the research raises concerns over whether the Government will hit its target and the quality of some apprenticeships.

Worryingly, 37 per cent of West Midlands employers said they had not recently employed apprentices and would not consider doing so in the future.

Learning and Work Institute surveyed 2,000 employers across England, finding high awareness of the National Minimum Wage, but low awareness of the rules for apprentices. They found:

33 per cent were unaware that apprenticeships required 20 per cent off-the-job training

25 per cent did not know this off-the-job training needed to be paid 20 per cent did not know that minimum wage rates rose after the first year of an apprenticeship. Stephen Evans, chief executive of Learning and Work Institute, said: “The expansion of apprenticeships is a good thing, it can help us meet our post-Brexit skills needs and give people the chance to earn and learn. “However, it’s clear we need to do more to ensure everyone is aware of the rules. “For example, we think training providers could play a bigger role in making sure employers know the minimum wage rules.”