Page "United Kingdom labour law" Paragraph 29

Since 1998, the United Kingdom has fixed a national minimum wage, and sets outer limits on working time for virtually all workers.

Direct wage and working time regulation is a comparatively recent phenomenon, as it was traditionally left to collective bargaining to achieve " a fair day's wage for a fair day's work ".

The Truck Acts were the earliest wage regulations, requiring workment to be paid in money, and not kind.

Now, the Employment Rights Act 1996 section 13 stipulates that employers can only dock employees ’ wages ( e. g. for missing stock ) if the employee consented to deductions in writing.

This, however, does not cover industrial action, so following ancient common law on part performance of work, employees who refused to 3 out of 37 hours a week in minor workplace disobendience, had their pay cut for the full 37.

From the Trade Boards Act 1909, the UK had set minimum wages according to the specific needs of different sectors of work.

But this system was eroded through the 1980s and eventually repealed in 1993.

To bring the United Kingdom back into compliance with basic standards in international law, the National Minimum Wage Act 1998 was introduced.

The minimum wage takes effect in every worker's contract.

Workers do not need to show " mutuality of obligation " or any other requirement except that they personally perform work for a wage and is not a client.

One curious exclusion, however, is a pupil barrister who in Edmonds v Lawson was held to not be " working " but be " conscientious in receiving instruction ".

The minimum wage rate is reset annually after guidance from the Low Pay Commission, and on 1 October 2011 it stood at £ 6. 08 for over 21 year olds, £ 4. 98 for 18-20 year olds, £ 3. 68 for under 18 year olds finished with compulsory education and £ 2. 60 for under 19 year olds or first year apprentices.

The National Minimum Wage Regulations 1999 spell out the details of how the minimum wage should be calculated.

Total pay received is divided by the hours actually worked over an average " pay reference period " of one month.

This definition has given rise to litigation in cases where a worker can stay at home but must answer phone calls, is allowed to rest or sleep during shifts, or must make herself available " on call " over a long period.

Generally speaking, it is irrelevant whether one is at home or not.

If a worker is given sleeping facilities and is not awake, the minimum wage need not be paid.

And if a worker is " on call ", then this time still counts at work if the worker is bound to stay within the vicinity of the workplace.

However, an exception in regulation 28 allows an employer to agree with a worker what the hours worked actually are, if they would ordinarily be unmeasured.

In Walton v Independent Living Organisation Ltd a worker who cared for a young epileptic lady had to be on call 24 hours a day, 3 days a week, but could do her own activities outside tasks such as going shopping, making meals and cleaning.

Her company made an agreement with her that her tasks took 6 hours and 50 minutes a day, which resulted in her £ 31. 40 allowance meeting the minimum wage.

Certain deductions may be made including £ 4. 51 per day for any accommodation the employer provides, though extra bills, such as for electricity, should not ordinarily be charged.

The minimum wage can be enforced individually through an ERA 1996 section 13 claim for a shortfall of wages in a Tribunal.

A worker may not be subjected to any detriment for enquiring, or requesting records or complaining about it.

However, because many workers will not understand how to do this, or have the resources, a primary enforcement mechanism is through inspections and compliance notices issued by Her Majesty's Revenue and Customs.