According to a UK Appeal Court, Government Back-to-Work schemes are in need of a major re-think. Cait Reilly, 24, claimed that requiring her to work for nothing at a Poundland store breached laws on forced labour. Judges quashed the regulations underpinning the work schemes, and the UK Government has now brought in new rules allowing these unpaid schemes to continue while it appeals.
The judges' decision could effectively prevent the Government continuing with the programme in its current form. This could have an effect on the Irish Job Bridge scheme, which has been criticised in some quarters due to the lack of payment received when on assignment.
According to a BBC article Miss Reilly, a University of Birmingham geology graduate, and 40-year-old unemployed HGV driver Jamie Wilson, from Nottingham, both succeeded in their claims that the unpaid schemes were legally flawed. This was because the regulations behind the schemes did not comply with the Act of Parliament that gave the DWP the power to introduce the programme. They had lost their original case, but part of this decision has now been reversed by the Appeal Court.
Miss Reilly said that in November 2011 she had to leave her voluntary work at a local museum and work unpaid at the Poundland store in Kings Heath, Birmingham, under a scheme known as the "sector-based work academy". She was told that if she did not carry out the work placement - which, she said, involved stacking shelves and cleaning floors - she would lose her Jobseeker's Allowance. Mr Wilson was told that his Jobseeker's Allowance would be stopped after he refused to take part in the Community Action Programme, which his lawyers said would have involved him working unpaid for 30 hours per week for six months.
These schemes do differ to the Irish Job Bridge scheme, our National Internship Scheme which takes on unemployed workers into organisations to gain the vital skills needed in the workplace. This scheme allows workers to retain their job seekers allowances whilst on a 6 or 9 month placement. The UK scheme requires that persons undertake this unpaid work experience or they will lose their entitlements, however whilst the Irish scheme does not require participation in order to retain benefits, it also does not pay interns whilst working, the rationale being they are not employees and as such the legislation requiring minimum wage being paid does not apply. Interns receive €50 per week in addition to their entitlements for carrying out this work, and this is why the UK ruling could have an impact here.
Many have criticised the Job Bridge scheme as being unfair to those who are unemployed, and it has been categorised as exploitation by some. The Scheme itself does provide strict guidelines for organisations on the participation in the scheme, however it si the non-payment of participants that has drawn the most criticism from observers.
Many have argued for a new training rate of pay to be implemented that would see interns receive a regular hourly rate. One thing is certain that unless it is as a part of a government approved internship scheme such as job bridge it is not permissible to not pay an intern/work experience person whilst in employment. non-payment could be seen as exploitation and the Government may have to rethink their own scheme in light of this UK ruling.
Peninsula Business Services also specialises in employment law for the UK & Northern Ireland, and should you have any concerns regarding any potential exposure by participating inthese schemes, please dont heistate to contact us on 0818 923 923
