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The National Minimum Wage Act 1998 was a flagship policy of the Labour Party in the UK during its 1997 election campaign and is still pronounced today in New Labour Party circulars as an outstanding gain for ‘at least 1.5 million people’. The National Minimum Wage took effect on 1 April 1999. The Labour Party is a centrist/centre-left political party in the United Kingdom (see British politics), and one of the United Kingdoms three main political parties. ...
The UK general election, 1997 was held on 1 May 1997. ...
New Labour is an alternative name of the British political Labour Party. ...
Prior to this date, no national minimum wage existed, although there were a variety of systems of wage controls, usually focussed on specific industries. Part of the reason for Labour's minimum wage policy was the decline of trade union membership over recent decades (weakening employees' bargaining power), as well as a recognition of the fact that the employees most vulnerable to low pay (especially in service industries) were rarely unionised in the first place. The minimum wage is the minimum rate a worker can legally be paid (usually per hour) as opposed to wages that are determined by the forces of supply and demand in a free market. ...
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Overview
The minimum wage requires that adults of age 22 and older are paid a minimum of £4.85 an hour, those aged 18 – 21 inclusive are paid a minimum of £4.10 an hour, and those aged 16 or 17 are paid a minimum of £3 an hour. (The adult rate has risen since 1999 from the initial £3.60 an hour.) Payment must be made in cash, although a 50p an hour deduction can be made for living accommodation. No extra benefits such as redundancy, pension payments, loans, or awards can be included as pay. An exception is that if tips are distributed through the payroll system, then the employer can calculate that as part of the minimum wage.
Details The National Minimum Wage Act 1998 is universally applicable to ordinary ‘workers,’ [s.1(2)] that is, anyone who has a contract to do work, except for a consumer or a client [s.54(3)]. Expressly included are those working through job agencies [s.34], so they have a duty not to let their profits rake into a worker’s basic entitlement. Home-workers are also included expressly, and the Secretary of State can make order for other inclusions. The SS can also make exclusions, as has been done for au pairs and family members in family business. Those engaged in accredited training can have their entitlement reduced proportional to the hours undertaken. Excluded by the Act are fishermen paid in a share of profits, unpaid volunteers and prisoners (ss.43-5). 1998 is a common year starting on Thursday of the Gregorian calendar, and was designated the International Year of the Ocean. ...
In several countries, Secretary of State is a senior government position. ...
Hours are the ‘pay reference period,’ but where pay is not contractually referable to hours, such as pay by output, then the time actually worked must be ascertained. The principle is a very basic one: that hours worked should never as a whole be paid below the minimum. Excluded from ‘worked’ are periods when the worker is on industrial action, time travelling to and from work and absent periods. When a worker is required to be awake and available for work, then they must also be paid, however this does not prevent so called ‘Zero hours contracts’ being used. That means you are guaranteed no hours, theoretically you are under no obligation, but it is strongly in your interest to be ready to work if your employer requests. Strike action (or simply strike) describes collective action undertaken by groups of workers in the form of a refusal to perform work. ...
Enforcement The NMW provides a useful definition for ‘exploited,’ as Parliament has decided that pay below that rate is unacceptable. But by definition, those who are exploited are often too helpless to exploit the opportunities to end their exploitation. The NMW is enforceable by a contractual claim or through s.13 of the Employment Rights Act 1996 or if the exploited worker is bold enough to demand to see his employer’s records and is refused, s. 18 NMWA gives him compensation to the order of 80 times the minimum wage. But this ignores the fact that many will not want to take any action, because they think it would mean an end to their employment. So s.25 and s.23 where employers may not subject their workers to dismissal or any other detriment, may in many cases be a red herring until the employment relation has come to an end. Even then, there are instances where many would still not enforce their rights, such as illegal immigrants, who know they face being sent home if they claim. Administrative enforcement by Inspectors under s.14 provides more help. Inspectors may order compliance and payment (s.19). That may be appealed by the employer, but ongoing failure to comply means cumulative penalties. The shortcomings of this are the resources given to inspect. Like the National Minimum Wage rate itself, that depends on the next election manifestos. 1996 is a leap year starting on Monday of the Gregorian calendar, and was designated the International Year for the Eradication of Poverty. ...
Illegal immigration is the act of moving to or settling in another country or region, temporarily or permanently, in violation of the law or without documents permitting an immigrant to settle in that country. ...
A manifesto is a public declaration of principles and intentions, often political in nature. ...
See also This article or section should be merged with tax credit Tax credits are credits on tax payable given by the government for specific reasons. ...
Wage Regulation refers to attempts by the Government to regulate wages paid to citizens. ...
External links - Inland Revenue: National Minimum Wage
- National Minimum Wage Act 1998 (text of Act)
- all National Minimum Wage laws and regulations
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