The Low Pay Commission

The first regulations: referral to the Low Pay Commission
5
1
Before making the first regulations under section 1(3) or (4) or 2 above, the Secretary of State shall refer the matters specified in subsection (2) below to the Low Pay Commission for their consideration.
2
Those matters are—
a
what single hourly rate should be prescribed under section 1(3) above as the national minimum wage;
b
what period or periods should be prescribed under section 1(4) above;
c
what method or methods should be used for determining under section 2 above the hourly rate at which a person is to be regarded as remunerated for the purposes of this Act;
d
whether any, and if so what, provision should be made under section 3 above; and
e
whether any, and if so what, descriptions of person should be added to the descriptions of person to whom section 3 above applies and what provision should be made under that section in relation to persons of those descriptions.
3
Where matters are referred to the Low Pay Commission under subsection (1) above, the Commission shall, after considering those matters, make a report to the Prime Minister and the Secretary of State which shall contain the Commission’s recommendations about each of those matters.
4
If, following the report of the Low Pay Commission under subsection (3) above, the Secretary of State decides—
a
not to make any regulations implementing the Commission’s recommendations, or
b
to make regulations implementing only some of the Commission’s recommendations, or
c
to prescribe under section 1(3) above a single hourly rate which is different from the rate recommended by the Commission, or
d
to make regulations which in some other respect differ from the recommendations of the Commission, or
e
to make regulations which do not relate to a recommendation of the Commission,
the Secretary of State shall lay a report before each House of Parliament containing a statement of the reasons for the decision.
5
If the Low Pay Commission fail to make their report under subsection (3) above within the time allowed for doing so under section 7 below, any power of the Secretary of State to make regulations under this Act shall be exercisable as if subsection (1) above had not been enacted.