(This note is not part of the Regulations)
These Regulations, which amend the National Minimum Wage Regulations 1999 (“the principal regulations”) and come into force on 1st October 2004, increase the minimum hourly rate of the national minimum wage from £4.50 to £4.85. They also increase the rate to be paid to those (including workers aged between 18 and 21) who qualify for the national minimum wage at a different rate, from £3.80 to £4.10. In addition, the Regulations provide, for the first time, that workers aged below 18 who have ceased to be of compulsory school age qualify for the national minimum wage. The Regulations set an hourly rate of £3.00 for such workers.
The Regulations amend the list of Government schemes to be treated as employment under a contract of apprenticeship (in many cases, participants, depending upon their age, do not qualify for the national minimum wage or only qualify after the first 12 months of such participation). They also have the effect that persons who are workers on specified Government schemes at pre-apprenticeship level will not be entitled to the national minimum wage, whether they are employed by the employer or not.
The Regulations also amend the per day value of accommodation amount, which is applicable where an employer provides a worker with accommodation. The alteration increases the amount from £3.50 to £3.75 per day that accommodation is provided.
The Regulations amend the record-keeping requirements contained in the principal regulations to provide that the employer of an output worker (ie. one paid per piece produced or task performed) must, where relevant, keep a copy of a certain notice served upon the worker and copy of data showing how he has arrived at certain rates required to be contained in the notice.
The Regulations contain three transitional provisions.
The Regulations contain a revocation provision which revokes previous provisions that increased the minimum hourly rate of the national minimum wage and the rate paid to those who qualify for the national minimum wage at a different rate.
A Regulatory Impact Assessment of the estimated costs and benefits of the rate increases and the introduction of the rate for those who have not attained the age of 18 has been placed in the Libraries of both Houses of Parliament. Copies are available to the public from The Employment Relations Directorate, P&S, Department of Trade and Industry, 1 Victoria Street, London SW1H 0ET and on the DTI website at www.dti.gov.uk.