UK Employment Law\ Employer \ National Minimum Wage
National Minimum Wage
The National Minimum Wage was brought in by the Labour government in order to raise the level of prosperity among some of the poorer parts of society. At first, business leaders were concerned that it would mean some smaller businesses could not afford to keep running – and thereby result in the opposite effect – redundancies. However, these fears have not generally materialised. The rate has gone up several times over the last decade, and there are likely to be further rises in the future.
The National Minimum Wage is enforced in UK law and must be adhered to.
The National Minimum Wage is going up October 2010.
- £5.80 > £5.93 per hour (workers 21 and over);
- £4.83 > £4.92 per hour (workers 18 to 20);
- £3.57 > £3.64 per hour (workers 16 to 17)
The government has extended the adult rate to workers aged 21. Previously the qualifying age was 22.
Apprentices
On the recommendation of the Low Pay Commission, the government is introducing an apprentice minimum wage of £2.50 per hour.
It applies to:
- apprentices under 19;
- apprentices aged 19 and over in their first year of apprenticeship.
Entitlement
Most UK workers over compulsory school leaving age are entitled to the NMW. All employers have to pay it if you are entitled. It makes no difference: how you are paid or how frequently; whether you are full or part-time; the size of your employer’s business; where you work in the UK. An employer has to pay you the NMW even if you were made to sign a contract for a lower rate.
You are entitled to NMW:
- If you have an employment contract;
- if you don’t have an employment contract, you could still be a worker and therefore can get NMW.
Who is not entitled?
- self-employed workers;
- volunteers;
- voluntary workers;
- work experience;
- certain apprentices (ie: under the age of 19);
- company directors;
- certain government schemes at pre-apprenticeship level;
- government employment programmes;
- European Community Leonardo da Vinci, Youth in Action, Erasmus and Comenius programmes
- Living in your employer’s household;
- Work for friends and neighbours;
- Members of armed forces;
- Share fishermen;
- Prisoners;
- People in religious communities.
The above exceptions were put in place to allow small businesses to continue to operate whilst also continuing to offer youngsters training opportunities. Some areas of the law have been questioned – the section about ‘living in your employer’s housegold’ has raised issues about how some domestic workers are treated.
