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The Committee notes with interest the adoption of the Employment (Jersey) Law 2003 (hereinafter the “Employment Law”), the Employment (Minimum Wage) (Jersey) Regulations 2004, as amended (hereinafter the “Minimum Wage Regulations”), and the Employment (Minimum Wage) (Jersey) Order 2007 (hereinafter the “Minimum Wage Order”), establishing a minimum wage system that came into force in July 2005.

Article 1(1) of the Convention. Establishment of minimum wage fixing machinery. The Committee notes the provisions of Part IV of the Employment Law and, in particular, sections 18–21 on the role, composition and powers of the Employment Forum in the minimum wage fixing process.

Article 2. Partial payment of wages in kind. The Committee notes that under section 3 of the Minimum Wage Regulations, accommodation and food are the only permissible benefits in kind. It further notes section 9 of the Minimum Wage Regulations that sets the maximum amount to be attributed to those benefits in kind. The Committee notes, however, that under section 17(2)(d) of the Employment Law, remuneration may consist, in whole, of benefits in kind, which is clearly inconsistent with the requirements of the Convention. The Committee therefore requests the Government to provide additional explanations on this point. 

Article 3(3). Participation of representatives of employers’ and workers’ organizations on a basis of complete equality. The Committee notes the Government’s indication that the Employment Forum consists of nine members, including three each from representatives of employers and workers, and independent experts. It is an independent, non-political consultation body and makes recommendations to the Minister of Social Security on minimum wage rates. It consults with a resource pool of approximately 150 interested parties, including large and small businesses, employer and trade associations, trade unions and staff associations, HR managers, lawyers, advisory bodies, pressure groups, individual employees and other interested parties across all industries. In the preparation of its recommendations, the Forum takes into account economic factors and all evidence and responses presented to it during the consultation process. The Committee would be grateful if the Government would continue to provide all available information on the activities of the Employment Forum in respect of minimum wage fixing.

Article 3(4). Minimum wage not subject to abatement. The Committee notes that section 4 of the Minimum Wage Regulations provides for a trainee rate. The Committee notes that the application of the trainee rate is subject to specific conditions (written training agreement, training of a sufficient quality which leads to a recognized qualification, training provided at no cost during paid working time) and, therefore, is entirely different from “youth” minimum wage rates on account of workers’ age and presumed inexperience. The Committee notes, however, that section 4 of the Minimum Wage Regulations also provides for the possibility of lower rates for employees who have not attained the age of 18 years. The Committee requests the Government to provide clarifications on the application of this provision in practice.

Article 5 and Part V of the report form. The Committee notes the information provided by the Government concerning the evolution of the minimum wage rates in the period 2005–07, the estimated number of workers in different industries who are paid the minimum wage and the number of inspections carried out in 2006 by compliance officers of the Social Security Department. The Committee would appreciate if the Government would continue to provide up to date and documented information on the practical application of the Convention.

Finally, the Committee wishes to draw the Government’s attention to the conclusions of the ILO Governing Body on the continued relevance of the Convention based on the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). In fact, the Governing Body has decided that Convention No. 99 is among those instruments which may no longer be fully up to date but remain relevant in certain respects. The Committee therefore suggests that the Government should consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which marks certain advances compared to older instruments on minimum wage fixing, for instance, as regards its broader scope of application, the requirement for a comprehensive minimum wage system, and the enumeration of the criteria for the determination of minimum wage levels. The Committee requests the Government to keep the Office informed of any decision taken or envisaged in this regard.

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The Committee notes with interest the information provided in the Government’s report concerning the preparatory work for the introduction of a minimum wage system and the drafting of relevant legislation. More concretely, the Committee notes the setting up of a tripartite body, known as the Employment Forum, for the purpose of making recommendations relating to the establishment, application and operation of a minimum wage. This body, which currently operates on a non-statutory basis, will eventually be responsible for consulting appropriate organizations and making recommendations regarding minimum rates of pay to the Employment and Social Security Committee before the matter is referred to the states of Jersey for their consideration and final decision. The Committee also notes that under the draft legislation, which is now being considered by the members of the Employment and Social Security Committee, it is not proposed to introduce a separate youth rate as was previously the case under the annual agricultural agreements concluded between the Jersey Farmers Union and the Transport and General Workers Union. The Committee recalls, in this connection, paragraph 171 of its General Survey of 1992 on minimum wages in which it emphasized that the quantity and quality of work carried out should be the decisive factor in determining the wage paid, and that in the absence of any provisions in the Convention providing for the fixing of different minimum wage rates on the basis of criteria such as the workers’ age, the general principles laid down in other instruments have to be observed, and particularly those contained in the Preamble of the ILO Constitution which specifically refers to the application of the principle of "equal remuneration for work of equal value". In addition, the Committee notes that under the proposed legislation the only benefit in kind that is allowed to be offset against the minimum hourly rate is the provision of accommodation. In this respect, the Committee hopes that the new employment legislation will give full effect to the provisions of the Convention which permits only the partial payment of minimum wages in the form of allowances in kind and requires a fair and reasonable valuation of such allowances. The Committee requests the Government to supply the text of the new legislation as soon as it is adopted and to keep it informed of any decision as to the level at which the statutory minimum wage should be set.

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The Committee notes the detailed information provided in the Government's report. It requests the Government to continue to provide, in accordance with Article 5 of the Convention and point V of the report form, general information on the practical application of the Convention in the agricultural sector, including: (i) the minimum wage rates in force; (ii) the available data on the number and various categories of workers covered by minimum wage provisions; and (iii) the results of the inspections carried out (e.g. the number of the violations reported concerning minimum wage provisions, the penalties imposed, etc.).