Unpaid Trial Work Periods (Prohibition) Bill

Bob Stewart Excerpts

2nd reading: House of Commons
Friday 16th March 2018 Commons Chamber

[Stewart Malcolm McDonald]

The hon. Gentleman knows, as do Conservative Members, that I wish to be a constructive voice in this Parliament while I am here. I think this is a good Bill. Some people may see it as not a perfect one, which is why it should go to Committee, so that we can make good law. If we are not here as legislators to make good law, what on earth is the point of this Parliament? Although my political career rests on that question, while I am here I would like to make some use of the time and so I agree with what he has to say. With support from Members from across the Benches and with great support enjoyed among the public, we should give the Bill a Second Reading.

I wish to adumbrate for Members why I believe, as do so many others, that the law needs to be changed. As I understand it, the Government’s view is that unpaid trial shifts are already unlawful and that such practices are covered by the National Minimum Wage Act 1998. It is 20 years old this year and undoubtedly a fine piece of legislation, but it is insufficient when it comes to dealing with unpaid trial shifts, although I do not think it was meant to be. We have the opportunity to put it right.

In 20 years of the 1998 Act, there has not been a single tribunal or a single fine issued. There has not been a single prosecution, naming and shaming or ticking off of anyone for the use of an unpaid trial shift. That feeds into the fact that the Government, the courts and the trade unions do not hold any statistics on unpaid trial shifts. Nevertheless, we all know that they happen.

[Bob Stewart (Beckenham) (Con)]

I think I support the Bill, but will the hon. Gentleman clarify that it will apply only to an unpaid trial for a job, and not to an unpaid sixth-former helping in a Member’s office for a while?

[Stewart Malcolm McDonald]

Every sixth-former should have the chance to do work experience in the hon. Gentleman’s office and I would not dream of seeking to rob any of them of the ability to do that. On a serious note, the Bill is not about work experience, which is a good thing. It does not concern itself with volunteering, which is also a good thing. The Bill does not concern itself with internships, because that would require specific legislation, but I shall return to them, because the Minister announced a Government initiative on them earlier in the year.

--- Later in debate ---

[Chris Philp]

Yes, I agree with that principle. As my hon. Friend pointed out in his earlier intervention, the idea that people should be fairly paid for a fair day’s work, or even for a fair few hours’ work, is an important Conservative principle, and I think it is an important fundamental right as well, so I agree entirely with that premise.

I want to put on the record once again my very strong support for the concept of the minimum wage—the national living wage—and the fact that it has been increased by such a large amount. While talking about wages for those on low earnings, I would point out in passing that the increase in the tax-free allowance in the past few years—from £6,500 to £11,500—means that take-home wages for people on the minimum wage, the topic of the Bill, have actually gone up by 37%, because not only has the minimum wage gone up by 32%, but they are also paying proportionately less tax. It is important to bear it in mind that low tax, as well as a decent wage itself, has a role to play in making sure people are properly paid.

We have talked quite a bit already about enforcement. Clearly, a national minimum wage, or national living wage, is only as effective as its enforcement, as the hon. Member for Glasgow South touched on. In the last financial year, 2016-17, HMRC, the body responsible for enforcing the national minimum wage, took action against 1,134 individual businesses—quite a good track record of taking action to enforce the minimum wage; clawed back £10.9 million—a fairly substantial sum; and took action that encompassed 98,000 workers who had been illegally underpaid. That suggests that HMRC is taking its enforcement role very seriously and enjoying some success in making sure that the national living wage and minimum wage are adhered to.

[Bob Stewart]

Just to clarify, HMRC did not keep the money but presumably gave it to those who had lost it. Is that right?

[Chris Philp]

When someone has been illegally underpaid, I believe that they receive retrospective compensation. As to where the funds go, I rather suspect they end up with Her Majesty’s Treasury, but certainly the unfair loss suffered by people who have been underpaid is made good.

--- Later in debate ---

[Dr Whitehead]

My hon. Friend makes an important point. He seems to have personally experienced all the various aspects of this problem: they came together on one occasion, in one place and happened to one person.

Many people have talked about their own experiences. One example comes, in fact, from Scotland. K from Kilmarnock says:

“My son was asked to do a trial shift in our local restaurant. The manager who was on shift did not even speak to him when he was in! He was left in the bar with no direction and when he tried to help the others he was told to get back behind the bar! He wasn’t paid a penny for his time. The same restaurant had already done the same thing to a friend of mine’s son except it was for a kitchen porter and he did 4 hours, no pay and again at end of his shift he just left waited over a week with no job offered.”

The use of unpaid trial shifts is a real problem under the current legislation. The concept of “shadowing” has been used by employers to justify bringing in unpaid workers to cover staff shortages, sickness, or particularly busy periods and events. There is a need to clarify the legal position for employees and employers with legislation, and the Bill seeks to do that by closing current legislative loopholes to ensure that workers are paid for every hour they work and every shift they do.

[Bob Stewart]

I think that what the hon. Member for Glasgow South (Stewart Malcolm McDonald) has put together is excellent, and I congratulate him. I also congratulate my hon. Friend the Member for Croydon South (Chris Philp). “Souths” seem to be in the air today!

Can it be made absolutely clear that the Bill will not apply to someone who goes along to have a taster for a day, does not necessarily work a shift, but just gets an experience of what the work is like? That is not what the Bill is about, is it?

[Dr Whitehead]

My clear understanding, which I think will be borne out by the hon. Member for Glasgow South, is that that is not what the Bill is about. It is not about work experience, or any of the other factors that the hon. Gentleman has mentioned.