Schemes that put claimants of Jobseekers Allowance (JSA) into unpaid work placements are not slave labour, a court has ruled.

There has been considerable controversy over the Department for Work and Pensions (DWP) administration and some major employers’ involvement in the scheme – with unemployed graduate Cait Reilly one of two people to take the DWP to court to challenge its legality. Reilly claimed it was in breach of the European Convention on Human Rights.

A DWP statement says: “The judgement means the DWP can continue to help people get the vital skills and experience they need to get into a job.”

Work and pensions secretary Iain Duncan Smith says the department is “delighted, although not surprised… Comparing our initiatives to slave labour is not only ridiculous but insulting to people around the world facing real oppression.

“Those who oppose this process are actually opposed to hard work and they are harming the life chances of unemployed young people who are trying to get on.”

The DWP does note: “While the Judge found in the department's favour on the main issues, he did find that the department should improve the clarity of the letters which warn claimants of a potential sanction should they fail to participate in the schemes without good reason.”

However, it says it does not believe there was anything wrong with the original letters and will appeal. This morning The Guardian writes that tens of thousands of jobseekers “are likely to be entitled to a rebate” as a result of this aspect of the judgement.