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25 november 2013, WEEK 10
life on death row the london philharmonic come to town claim to fame
the big debate
Rob Brydon’d up my day: meeting Uncle Bryn in the Green
policy an ethical form of population control?
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Is China’s one child
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science
arts
Scientists start work on a miraculous hangover free alcohol
Exclusive interview with musician Nick Mulvey
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sports TUNE IN ONLINE Mohawks reign supreme: the frisbee team ups the ante
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The end of the unpaid intern HMRC crackdown marks an important turning point in the campaign for fairer internships
Eduard Mead News Editor Following new guidance from the government, a crack down on companies offering unpaid internships has been anounced, in a bid to stop firms from using interns as free labour. HM Revenue and Customs, the government body responsible for enforcing the minimum wage, will initially target 200 employers who have recently advertised internships to ensure that they are paying their new employees a legal wage. Since October 2013, the National Minimum Wage has been £5.03 for 1820 year olds, and £6.31 for those aged 21 and over, up 1% and 1.9% respectively on last year, but below the rate of CPI inflation, which currently stands at 2.2%. Michelle Wyer, Assistant Director of HMRC, issued a warning to companies thinking of circumventing their legal wage obligations: “Any employer not playing by the National Minimum Wage rules needs to put things right now. “Those that don’t can expect a visit from HMRC – which could result in a penalty, payment of arrears, being publicly named and shamed, or a prosecution.” According to research conducted by the Trade Union Congress, it is estimated that around 250,000 workers in the UK are not paid the minimum wage. In 2012, HMRC identified 736 employers who paid workers either less than they were entitled to or nothing at all. Following the HMRC crackdown, 26,500 workers received the wages they were entitled to, totaling £3.9m. This has led to fears that as internships become viewed as a key step to gaining future employment, students from poorer backgrounds will be unable to afford the same opportunities as their more wealthy peers. The move has been welcomed by a number of student bodies, including the National Union of Students, who have, for years, campaigned against the
practice of offering unpaid internships which they believe creates a culture “that expects young people to work for free in order to get into employment”. Dom Anderson, Vice President (Society and Citizenship) of the National Union of Students, was encouraged by the announcement: “With over a million young people unemployed, we need to be clear now more than ever that young people’s enthusiasm and desire to work cannot be exploited. A fair day’s work al-
ways deserves a fair day’s pay.” The University of Sussex’s Careers and Employability Centre makes clear that it “does not advertise opportunities which contravene employment law legislation”, and asks “all employers to offer the higher level National Minimum Wage.” HMRC’s announcement comes at a time where the cost of living and social mobility is driving the political agenda. Jo Swinson, the Government’s Employment Relations Minister, said: “Not
paying the National Minimum Wage is illegal and if an employer breaks the law, government will take tough action”. Unpaid internships are most often targeted at those pursuing careers in journalism and the fashion industry. In June 2013, nine companies, including Acardia, which owns Topshop, were fined just under £200,000 for failing to pay interns the minimum wage. Following this, Arcadia agreed to end all of their unpaid internships.
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At the time, the NUS said: “I congratulate Arcadia on leading their industry by not only ending unpaid internships but also recognising the work put in by former interns. HMRC have warned the fashion industry that interns must be paid at least the minimum wage and those who don’t follow Arcadia’s example must face the legal consequences.” The Badger spoke to a wide range of students about the issue, but whilst most broadly welcomed the move, a number were frustrated by what they perceived as slow progress on “what is not a new issue”. The Students’ Union have long campaigned on the issue, arguing that: “Unpaid internships are one of the biggest obstructions faced by young people and students today and we want to put a stop to the prevailing culture that expects young people to work for free in order to get into employment.” John Leech, Liberal Democrat MP for Manchester Withington, was recently found, by Sky News, to be offering an internship without pay, lunch or travel expenses. The job advertisement states “the successful candidate would be able to develop a broader range of skills from the internship if they choose to undertake it for an equivalent of 3 months full-time. This is usually 6 months part time, but can be up to 12 months.” However, the website hosting the advertisement, W4MP, added: “The role being advertised is a voluntary one. As such, there are no set hours and responsibilities and you should be free to come and go as you wish. If the post demands set hours and/or has a specific job description you may be deemed to be a ‘worker’ and be covered by National Minimum Wage legislation.” Anyone who suspects that they are not receiving the minimum wage can contact the National Minimum Wage helpline on 0845 6000 678.