by Houman Barekat
A landmark decision by an employment tribunal in Reading could have far-reaching implications for firms which try to get away from paying young people properly by hiring interns for work experience on expenses only.
Until now, it was thought that such arrangements were covered by some of the numerous exceptions to the National Minimum Wage Act so that, for employment law purposes, the interns were treated as volunteers. But the ruling in Reading could change all that.
Nicola Vetta’s dispute with London Dreams Motion Pictures, a film company which specialises in rom-coms, began as a straightforward breach of contract claim in the county court in respect of the non-payment of expenses.
In summer 2008 she was taken on as an unpaid art department assistant on the understanding that she would be reimbursed for production-related expenses – but the company withheld payment so Ms Vetta issued proceedings against them.
Then, on the advice of her trade union BECTU, she issued proceedings at an employment tribunal, arguing that the law gave her a statutory entitlement to be paid the minimum wage for her work, notwithstanding that the parties had agreed to an expenses only arrangement. At a hearing on November 20, she argued that the expenses only deal breached the statutory framework laid down by the National Minimum Wage Act.
Now the tribunal has found in her favour. It took the view that Ms Vetta was, in fact, a worker carrying out work in a personal capacity for an employer and was entitled to the protection conferred by the 1998 Act.
Martin Spence, assistant general secretary of BECTU, said the decision “will give enormous comfort to industry workers,
and in particular to new entrants, who face huge demands when they are starting out but who can often find themselves at risk of exploitation”.
Ms Vetta said it was “wrong for employers to exploit the aspirations of young people as a source of zero-cost labour”.
As a “first instance” decision of a tribunal, it does not amount to a change in the law as such and LDMP has the right to lodge an appeal.
But, if the decision is upheld, it will have serious ramifications – not only for the entertainment business, but for all industries where the engagement of unpaid interns is widespread.
