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Minimum Wage - Accredited Training Rate

CODE OF PRACTICE - this code has been approved by the Employment and Social Security Committee.

Code of Practice

Minimum Wage – Accredited training rate

1. Introduction

1. Under the terms of Article 9 of the Jersey Advisory and Conciliation Law 2003, the Employment and Social Security Committee is empowered to issue or approve Codes of Practice providing practical guidance for the purpose of promoting the improvement of employment relations. This Code is intended to provide such guidance on what qualifies as ’accredited training’ for the purpose of the minimum wage ’trainee’ rate.

2. The provisions of this Code are admissible in evidence and may be taken into account in determining any question arising in proceedings before the Employment Tribunal or a court. Failure to observe any provision of the Code does not, of itself, render a person liable to any proceedings.

3. Whilst every effort has been made to ensure that the summary of the relevant statutory provisions included in the Code is accurate, only the Employment Tribunal and the courts can interpret the law authoritatively.

2. Background

The acquisition of skills remains a priority for employees of all ages, especially those moving into a new sector or returning to work. A new employee who brings no prior knowledge or experience to an employer needs time to be developed and initially they may not contribute fully to the workforce. 

Bearing this in mind, the States agreed that a statutory minimum wage should not become a barrier to the receipt of structured training or taking on an inexperienced employee. To achieve this and to provide an incentive for employers to train their employees, it was agreed that those on accredited training programmes and courses should be entitled to a "trainee rate" for a maximum period of one year. This provision will only relate to employees over school leaving age who start a new job with a new employer;

According to a survey carried out by the Low Pay Commission recently, only 5% of employers in the UK were using the ’development’ rate, but it is anticipated that there could be a higher take up in Jersey for a training rate as it would apply to all employees over school leaving age. It is therefore particularly important to keep young people in mind when considering what training courses would be appropriate for accreditation.

It is difficult to define what a ’trainee’ is, and employers could classify younger employees as trainees to justify paying them the lower rate, unless there are strict rules on what can be classed as a trainee. Enforcing such rules to ensure only ’genuine’ trainees are paid at the lower rate could be expensive and difficult to enforce.

Inexperience at doing the job should not be justification for paying the trainee rate. If there was a dispute over hourly rate of pay, it would be up to JACS, the Employment and Social Security Committee, or ultimately the Employment Tribunal, to determine whether the training is "accredited" and the onus would be on the employer to produce the relevant records.

This code of practice outlines what qualifies as "accredited training", but also allow flexibility to change in line with the development of new training schemes in Jersey.   

3. The Employment (Minimum Wage) (Jersey) Regulations 200-

The Minimum Wage Regulations provide that ’trainees’ may be paid at a different hourly rate.  The Regulations require that a ’trainee’ is;

  1. an employee over compulsory school leaving age
  2. undergoing an ’accredited course of training’ by written agreement with his or her employer
  3. in the first year of employment by that employer, in the particular job for which the employee is being trained.

After one year of employment, with the same employer, on the trainee rate, employees will become entitled to the full rate of minimum wage.  

An ’accredited course of training’ is defined as a course of training that is approved in writing by the Employment and Social Security Committee as an accredited course for the purpose of the Regulations. Any training course that meets the requirements of this code of practice is deemed to have met the written approval of the Committee.  However, where there is uncertainty as to whether the provisions of this code have been met, a written request may be submitted to the Committee, with appropriate and detailed documentation about the training, asking if the Committee will give it’s written approval.  

4. Requirements

In addition to those requirements provided in the Regulations, (i.e. points 1 to 3 above), the following requirements must be met in order to justify the payment of the trainee rate.

  • Employers must keep a copy of the agreement for three years from the end of the training period and be able to produce it on request.
  • Training must be of a sufficient quality and duration to enable the employee to reach the required standard and to complete the course successfully.
  • Participation on an accredited training course may be at or away from the workplace but must be primarily during the normal/contractual working hours for that employment and must be paid.
  • There must be a formal qualification at the end of the training that is a locally or nationally recognised and certified qualification, although the qualification does not necessarily have to be attainable within one year and the employee does not necessarily have to achieve the qualification within that year.
  • There must be some supervision of the training.
  • The trainee rate should only be payable while the provision of training is ongoing, i.e. the maximum duration that the trainee rate may be paid is either the time taken to successfully complete training, or one year, whichever is the shorter.   Even if the training is not successfully completed within the year, the employer is not entitled to pay the employee for a longer period than one year.
  • The training should be provided at no cost to the employee
  • The training should be of relevance to the job for which the employee is being trained.

5. Course types, providers and qualifications

Any of the following count as ’accredited training’ for the purpose of the Minimum wage trainee rate, as long as the requirements described in section 4 are also met;

i)        training that is recognised and accredited by a national or international exam board, e.g. City and Guilds.

ii)       a course which leads to a National Vocational Qualification (NVQ); or to a General National Vocational Qualification (GNVQ), or equivalent;

iii)     a course which leads to a GCSE or A level;

iv)     an "access" course for entry to higher education;

v)      In-house company training which has been certified as including at least 50 per cent of the requirements in terms of whole units of one or more S/NVQs by the awarding body or similar suitably qualified independent organisation.

vi)     a course designed to assist persons whose first language is not English to achieve any level of competence in English language.

vii)   a course for basic literacy in English, basic mathematics, or a course in independent living and communication for those with learning difficulties, which prepares them for entry to the other courses above.

viii)  any course that is included in the Economic Development Committee’s Training and Employment Partnership ’Skills Strategy for Jersey’.

ix)     a training course that does not fit into the above categories but meets the requirements outlined in section 4 and would meet formal verification tests of validity, e.g. would meet criteria and inspections in line with the UK’s Learning and Skills Council or Adult Learning Inspectorate. In this case the employer must be particularly vigilant in maintaining adequate records to demonstrate that the training and its outcomes meet these criteria and should apply in writing for the Committees’ approval of the training scheme or course.