National Minimum Wage and transport deductions - REC takes forward member concerns

Following feedback at recent ëREC on the Roadí events, the Recruitment and Employment Confederation has taken forward member concerns over transport deductions from workers earning the National Minimum Wage (NMW) or just above.

The current situation is that agencies cannot deduct transport costs from a worker's pay if the effect of that deduction is to bring that worker's pay below the NMW.
Commenting on this and on the outcome of recent meeting with the Department for Business (BERR) and HMRC, Lewina Farrell, Senior Solicitor & Commercial Advisor at the REC says: ìThe REC fully supports measures to protect workers from unscrupulous labour providers. However, the net result of the current regulations is that many agencies are no longer providing transport in situations where it is extremely difficult for workers to get to their assignment.

ìAs a result, many workers are arranging their own costly and often dangerous transport just to get to work. Although there does not appear to be much room for manoeuvre at present, we are committed to working with BERR and other Government Departments to explore workable options that would enable law abiding agencies to provide what is often a necessary service for workersî.

REC members will be kept up to date with developments on this issue and on the wider to campaign to address the activities of those rogue providers that do exploit workers and that undercut legitimate agencies.

The REC was represented on the Governmentís Vulnerable Workers Enforcement Forum which was chaired by the Employment Relations Minister. The REC is also represented on the Board of the Gangmasters Licensing Authority.