Nurseries warned on minimum wage payouts

Wendy Jamieson-Franks, owner of Daisychain in Brighton, was forced to make payments in arrears to make up the minimum wage to a staff member employed as an NVQ 3 apprentice.

She said the 17-year-old never started her college course and subsequently left.

Ms Jamieson-Franks told Nursery World, 'I had a student on a placement for NVQ level 2. She didn't want to stay on at college and asked if she could do her NVQ level 3 as an apprentice in my nursery. I contacted the local college who put me in touch with a company who arranged external training.'

The student took a test for numeracy and literacy, which showed she would need to meet minimum requirements before starting the course.

'In November she said she had submitted half the work but it got lost online! In January she walked out without any notice.'

In February Ms Jamieson-Franks received a letter from HMRC claiming she had not paid minimum wage, followed by a visit. She said, 'Despite showing proof the girl had been taken on as an apprentice, the inspector said she should have been paid the minimum wage from the day she started until the day she left because she had been working and had not received any training. But the only reason she didn't receive any training was because she didn't meet the minimum literacy and numeracy requirements.'

A HMRC spokesperson said, 'Broadly speaking, anyone who is an apprentice and is under 19 is exempt from the minimum wage, and older apprentices are exempt in their first year. But employers need to demonstrate that their workers are genuine apprentices. If you employ an apprentice, not on the minimum wage, you must have proof of a formal apprenticeship arrangement.'

Further information

The minimum wage helpline is 0845 6000 678.