DEFRA announces the abolition of the Agricultural Wages Board

The decision to abolish the Agricultural Wages Board will bring the industry in line with other sectors and result in workers being subject to the National Minimum Wage legislation, writes Gemma Burnham, a Solicitor in Hewitsons employment team.

In July 2010, the Environment Secretary, Caroline Spelman, announced the Government’s plan to abolish the Agricultural Wages Board, which currently sets the minimum wage for agricultural workers and has the power to decide other terms and conditions of employment for workers in this sector, for example, in relation to holidays and sick pay.

The announcement came as a result of DEFRA’s Structural Reform Plan, aimed at modernising DEFRA’s arm’s-length bodies.

The decision to abolish the Agricultural Wages Board and the associated committees reflects the view that the legislation has become outdated, inflexible and onerous on farmers and that with the workers already adequately protected under the National Minimum Wage legislation, the Agricultural Wages Board is unnecessary.

Unite, the Union which represents many agricultural workers, has stated that it will campaign against the proposed abolition in order to protect agricultural workers. However, the announcement has been welcomed by employers and the organisations that represent employers in the sector.

The Agricultural Wages Board will be abolished by the enactment of the Public Bodies Reform Act, which is due to come into force in 2011.