What you need to know when employing young workers

Employment lawyer Felicity Staff explores the legal implications of employing workers under the age of 25.

According to a recent survey commissioned by The Prince’s Trust that assessed the happiness of 2,136 young people aged between 16 and 25, around one person in 10 said they feel unable to cope with day-to-day life. Young people who are not in education, employment or training – also called “NEETs” – are more than twice as likely to feel this way than their peers. More than half of young people said they feel disillusioned by the current state of the job market.

The results of the survey clearly illustrate the importance of employment to the overall wellbeing of young people. Yet in these difficult economic times, they increasingly find themselves trapped in a catch-22 situation – rejected by employers because of a lack of experience and with no hope of gaining experience without a job – and, as a result, they risk becoming disengaged from the labour market.

In the current economic climate, the temptation for employers to recruit those who can “hit the ground running” rather than investing in young people is understandable. So, what is the business case for investing in young workers and what legal considerations should employers keep in mind?

The business case

Cost efficiency
Age differentials in the structure of national minimum wage (NMW) legislation mean that young people can be employed cost effectively – for example, under apprenticeship schemes – and can be trained up to meet industry standards. Developing talent in-house and growing a committed workforce can improve staff retention and reduce future recruitment costs. Employees who have trained with a business and have bought into its values are more likely to stay.

Innovation and brand value
Young people provide insight into new markets, enabling businesses to gain a competitive advantage over their rivals. Recruiting young people sends a clear signal that an employer is engaging with its community, which can boost the public’s perception of the company.

Adaptability
Young workers are often less constrained by a need to work in specific locations or during particular hours. Their adaptability offers a range of options for employers who take the time to nurture their talents.

Succession planning
An organisational culture that focuses on the development of young people minimises the negative effects of staff absences and unplanned retirement. Establishing effective support structures helps to ensure that valuable skills remain in-house.

Legal considerations

National minimum wage
The NMW dictates the minimum hourly rate that must be paid to workers. Current rates are £6.19 per hour for those aged 21 or above, £4.98 for those aged between 18 and 20, and £3.68 for those under 18 years of age. Apprenticeships offer an alternative for employers, as the minimum wage for apprentices is currently £2.65 per hour. The National Apprenticeship Service provides useful guidance on the process of offering apprenticeships and the legal structures that can be used.

Probation periods
Incorporating a probation period into an employee’s contract is a useful safeguard for employers. If they are dissatisfied with the employee’s performance they may dismiss the employee at any time within the probationary period on minimal notice, usually around one week.

Health and safety
Special health and safety rules apply when employing under-18s. There are restrictions on 16- to 18-year-olds undertaking certain types of work – for example, work that involves a health risk because of extreme cold, heat or vibration. Employers should undertake thorough risk assessments before appointing a young person, taking into account their age and level of experience.

Working time
Young workers have particular rights under the Working Time Regulations 1998. Those over the minimum school-leaving age but under 18, and those on work experience schemes, may not work between 10pm and 6am or between 11pm and 7am (except in certain circumstances). They must have at least 12 hours’ rest between each working day, at least two days’ rest per week and a 30-minute rest break when working longer than four-and-a-half hours. Other stipulations under the Regulations also apply.

Practical considerations
Establishing support structures, such as peer-group support, can help young workers to develop, reaping long-term business rewards. While young workers may require more training, this can be focused to address organisational skills gaps with a view to maximising business growth.

Avoiding discrimination
Age is a “protected characteristic” under the Equality Act 2010. This means employers must not discriminate against young people, either directly or indirectly. As a matter of good practice, employers should avoid:

• requiring job applicants to have a specific length of experience – advertisements and specifications should require proven skills in certain areas, and salaries should be appropriate to the role instead of the applicant’s age;
• asking questions in interviews relating to age; and
• making stereotypical assumptions about job applicants based on their age.

While it may be justified to set an age minimum for applicants in certain circumstances, age should generally not be a factor when assessing a candidate’s suitability.

Conclusion

Employers who tap into the benefits of recruiting and training young people can reap long-term business rewards. With an open-minded approach, coupled with effective support structures, employers can benefit greatly from investing in young workers.

Felicity Staff is an associate in the employment and pensions team at Charles Russell LLP.