Agricultural Wages Board

27-10-2006

The Agricultural Wages Board (AWB) for England and Wales confirmed the details of the new Wages Order that came into effect on 1 October 2006.

The AWB had originally decided modify the calculation of holiday pay by including any voluntary overtime worked over the previous twelve weeks. This decision was strongly objected to by a number of independent organisations including the National Farmers Union and, in an unprecedented move, the AWB decided to reverse the decision.

Solid economic evidence proved to be a pivotal aspect of the decision, and, following a consultation period, the revised Agricultural Wages Order will be brought into force.

The revised changes to the Wages Order are as follows:

• The minimum rates for Grades 2, 4, 5 and 6 will be increased by approximately 2.9%. This increases the basic minimum rate for an adult standard worker from £5.58 per hour to £5.74 per hour.
• The minimum basic rate for a Grade 3 worker will increase by 6.8% from £5.91 per hour to £6.31 per hour.
• The minimum basic Grade 1 rate for workers over compulsory school age will increase by 5.9% from £5.05 to £5.35 per hour in line with the National Minimum Wage.
• Other rates and allowances will increase by 2.9%.
• The Grade 1 Basic Trainee grade will be re-named "Initial Grade".
• Initial Grade workers will become entitled to receive training to meet Standard Worker requirements after 30 weeks continuous employment with the same employer.
• Age-related pay differentials will be abolished with the exception of the rate for Initial Grade workers of compulsory school age and Apprentices in the second year of their Apprenticeship.
• Appendix 2 will be replaced with specific mandatory and optional competences required and Appendix 5 will be deleted.
• The Young Trainee category will be named "Trainees" and the scope will be amended to reflect changes to Government training schemes.
• The Flexible Worker category will no longer have a minimum age requirement of 18 years of age.
• The upper age limit for Apprentices will be removed.
• The sections on Sundays and Holidays and Other Leave in the AWO will be merged and simplified in a single paid holidays section.
• Total annual holiday entitlement will be increased from 22 to 23 days a year for a full-time worker working 5 days a week (and other workers will receive pro-rata benefits).
• All workers will receive appropriate entitlement to paid leave relating to Bank and Public holidays which fall on a day when the worker does not normally work.
• Holiday pay will be calculated on the basis of gross actual earnings for all hours worked excluding any non-pay benefits received and where pay varies from week to week will be averaged out over the 12 weeks prior to the worker taking her/his holiday.
• For workers with a contract of employment starting on or after 1 October 2006 Sunday work will not automatically attract the overtime premium only by virtue of the fact that work is being done on a Sunday.
• The definition of overtime in the Order will be simplified in order to ensure consistency with the changes arising from the Sunday working provisions.
• Work on agricultural pensions will continue in the light of the publication of the Turner Report and the government White Paper "Security in Retirement".
• The "other accommodation" offset will increase to £4.15 per day.
• It will also consider allowing paid leave in cases of domestic emergencies (e.g. medical or hospital appointment).
• Entitlement to Paternity leave will be removed and replaced by a £50 grant to male and female workers upon the birth or adoption of a child.

Other technical and consequential drafting amendments will also be made.

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