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UK PROBE INTO WORK PLACEMENT RISKS FUTURE OF SECTOR
The Department for Business, Enterprise and Regulatory Reform (Berr) in the UK is currently investigating a number of UK-based work experience agencies for “illegally” charging international students a fee to find them work placements and also for providing placements in companies that pay students less than the national minimum wage.
Under the Employment Agencies Act 1973 and National Minimum Wage Act 1998, agencies placing students in a work environment that provides food, accommodation or pocket money are not allowed to receive a fee for their services, while companies offering such placements must pay students the minimum wage. Currently, workers aged 22 and above must be paid UK£5.52 (US$11.4) per hour while workers between the ages of 18 and 21 must receive UK£4.60 (US$9.5) per hour.
This news has taken many in the sector by surprise. Keith Locker from Eagle UK Work Experience Programme in Halesowen believes that an enforcement of the law regarding paying the minimum wage to students will have far reaching consequences. “Any UK company offering a work experience placement to an individual student would appear to leave itself open to legal proceedings against them if they fail to pay the national minimum wage, even for very short-term placements,” he said. “If all UK companies knew that this was the case, I believe it would effectively stop the majority of companies from offering such placements and therefore prevent [students] from getting the experience they need.”
Locker added that the government’s interpretation of the regulations had yet to be tested in a court of law and that the rules applied even for students undertaking a work placement as part of their studies, and who have a training agreement between their school and the company stating that no remuneration is required. “As regards not being able to charge a fee for finding work experience placements, we strongly disagree that this constitutes employment,” he said.
Jayne Stroud from The Training Partnership in Torquay said that they had also been interviewed by Berr recently. “As a company we make it very clear that our charge is based on the 24/7 student welfare we provide,” she said. “In fact our service provides for the moment of arrival to the moment of departure. We hold weekly meetings and monthly parties as part of the service and maintain contact with the paid provider throughout the time the student is with them.”
Joanne Sayer from the Twin Group in London said that they had also been in talks with Berr. “They contacted us in early 2007 and [the matter] is now in the hands of our solicitors,” she said.
BLUE CARD FOR EUROPE
The European Union (EU) has unveiled plans to introduce a “blue card” for skilled migrants, which will be similar to the USA’s green card. The scheme would allow highly skilled migrants to live and work within the countries of the European Union and was developed in order to meet the estimated shortfall of 20 million skilled workers in the next two decades.
To be eligible, immigrants would need to hold a recognised diploma and have at least three year’s professional experience. They would also need the offer of a job for a minimum one-year contract, which could not be filled by a European citizen. Blue card holders would be able to travel freely throughout the European Union but would have to stay in the country where the card was first issued for two years.
Franco Frattini, Vice President of the European Commission, said, “We want Europe to become at least as attractive as favourite migration destinations such as Australia, Canada and the USA. We have to make highly skilled workers change their perception of Europe’s labour market.”
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