Legal advice: NMW for 16 and 17-year olds

How would a national minimum wage for 16 and 17-year-olds affect the licensed trade?

By Rebecca Caws of thePublican.com's legal team of experts from London solicitors Joelson Wilson.​

Since April 1999 the majority of the UK's workforce has enjoyed the protection of the national minimum wage (NMW).

The current rates are £4.50 per hour for adults aged 22 and over and £3.80 per hour for those aged 18 to 21. Those entitled to the NMW may bring a case against their employer at an employment tribunal if they are paid below the NMW.

Sixteen and 17-year-olds do not have the same protection at present, but a report setting out the advantages and disadvantages of the introduction of a minimum wage for 16 and 17-year-olds was submitted to the Low Pay Commission late in 2003.

The Low Pay Commission was originally against a NMW for 16 and 17-year-olds, because it might entice young people to enter the workforce too early. It was hoped that they would instead be encouraged to pursue their education and training.

The recent report, compiled by the Department for Trade and Industry, suggests that encouraging young people to take part in education and training is important, but that this should be balanced against the need to protect them from exploitation through low wages. While not opposing a NMW for young people, the report suggests that any NMW should be set at a cautious level.

So how would this impact on a business? Take any pub, bar or hotel: during the busy seasons temporary staff are likely to be recruited among students on school holidays.

While chores such as glass-collecting or waiting may not be the most sought-after positions, these matters are essential on the hottest, busiest day of the season. The current situation provides a pool of willing seasonal staff, but there is no obligation to pay a minimum wage. If this were to change it may impact upon the costs of meeting the seasonal rush and the availability of jobs for students.

Permanent members of staff in the hospitality industry aged 16 or 17 would be similarly protected if a NMW were introduced. If employers were obliged to pay a NMW they may choose to "get their money's worth" by employing a slightly more experienced candidate, limiting the amount of training they would need to provide.

For the above reasons it is important that any NMW introduced for 16 to 17-year-olds must be set at an appropriate level, otherwise the value of youth may be priced out of the market.