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REC makes formal submission

REC makes formal submission to Low Pay Commission

In the week that the National Minimum Wage goes up to 5.80, the Recruitment and Employment Confederation (REC) has submitted evidence to the Low Pay Commission for its 2010 report.

The REC submission underlines the rises in costs in the recruitment market over recent years and key policy issues affecting the supply of staff into lower paid positions. The paper concludes with a number of practical recommendations for the Low Pay Commission.

Commenting on the submission, Anne Fairweather, the RECs Head of Public Policy says: "The minimum wage will continue creep up and recruiters are in fully in favour of workers receiving fair and liveable wages. At the same time, we must take account of rising employment costs and ensure the any increases are reasonable.

"The other priorities for the industry are to get more clarity on tax dispensations and salary sacrifices in relation to the minimum wage and to ensure that effective enforcement mechanisms are in place.

As well as providing a formal submission, the REC has arranged for a number of member agencies to provide an industry perspective of the Low Pay Commission directly to members during itd forthcoming programme of regional visits.

The REC's recommendations to the Low Pay Commission are as follows:
A rise in the minimum wage needs to be kept to a minimum to accelerate the upturn in hiring activity
A clear position is needed on tax dispensations and salary sacrifices in relation to the minimum wage
The Low Pay Commission should consider minimum wage enforcement issues and ensure that this is focused on genuinely abusive situations rather than more technical breaches
The National Minimum Wage and minimum agricultural wage should be aligned to avoid unnecessary complications.


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