Employer was ordered to pay unpaid wages after failing to register an apprentice and unlawfully withholding pay below the national minimum wage.

The Complainant claimed unpaid wages for work carried out between 30 September 2024 and 6 January 2025 at the Respondent’s garage. He had initially done unpaid work experience at the Respondent’s home in July 2024, but when later offered work at the garage and an apprenticeship opportunity, he did not agree to work without pay. The Complainant worked 59 days, from 9 a.m. to 6 p.m., expecting to be registered as an apprentice. He was told by the Respondent that payment would only be made after apprenticeship registration and that the initial period was considered unpaid trial work.

The Respondent stated that the Complainant had initially sought work experience which led to discussions about an apprenticeship. It was agreed that the Complainant would be paid in cash until registered with SOLAS, after which he would receive the apprentice rate. Around October 2024, the Respondent applied for SOLAS registration, but misdirected forms caused delays. A SOLAS training advisor later visited and advised on registration requirements. The Respondent accepted wages were due but disputed payment at the national minimum wage, insisting only the apprentice rate applied. The Respondent intended to backpay at that rate. When the Complainant demanded minimum wage, the relationship ended.

The Adjudicating Officer found that the Complainant was employed under a contract of employment and entitled to the national minimum wage, as he was never registered as an apprentice with SOLAS. The Respondent’s reliance on an apprentice rate of €4.75 per hour had no lawful basis. Although there may have been an intention to register as an apprentice, this did not occur, and any delays or issues with SOLAS were irrelevant. As no wages were paid for the period 30 September 2024 to 6 January 2025, this amounted to an unlawful deduction under section 5(6)(b) of the Payment of Wages Act 1991. The Adjudicator directed the Respondent to pay the complainant €5,418.00 gross.

Employers should:

• Ensure that all workers engaged under a contract of employment are paid in full and at the correct lawful rate from the outset. If the intention is to employ someone as an apprentice, the registration process with SOLAS or the relevant authority must be completed promptly and confirmed in writing before applying any apprentice pay rates. 
   
  
• Paying a reduced rate on the assumption that apprenticeship registration will occur later creates a significant legal risk, as national minimum wage laws will apply unless formal apprenticeship status exists. Clear written agreements and proper documentation should be in place before work commences, specifying the pay rate, hours, and terms. 
   
  
• Finally, wages must be issued promptly and in accordance with the Payment of Wages Act 1991. Any non-payment or underpayment can be treated as an unlawful deduction and may result in significant awards. Employers should maintain accurate records to evidence compliance.

The full case can be found here.