National Minimum Wage Regulations 1999
| Jurisdiction | UK Non-devolved |
| Citation | SI 1999/584 |
| Year | 1999 |
1999 No. 584
TERMS AND CONDITIONS OF EMPLOYMENT
The National Minimum Wage Regulations 1999
Made 6th March 1999
Coming into force 1st April 1999
Whereas a draft of the following Regulations was laid before Parliament in accordance with section 51(5) of the National Minimum Wage Act 19981and approved by resolution of each House of Parliament:
And whereas the Secretary of State, before the Act came into force, referred to the Low Pay Commission matters corresponding to each of the matters required, by section 5(1) of the Act, to be referred to the Commission before the making of the first regulations under sections 1(3), (4) or 2 of the Act:
And whereas that referral is, by virtue of section 8(3) of the Act, to be treated as the referral required by section 5(1) of the Act unless the Secretary of State otherwise determines, and he has not so determined:
And whereas the report of the Low Pay Commission containing the Commission’s recommendations about each of the matters referred was made to the Prime Minister and the Secretary of State before the Act came into force:
And whereas that report is, by virtue of section 8(5) of the Act, to be treated as the report of the Low Pay Commission under section 5(3) of the Act on the referral unless the Secretary of State has determined as mentioned in the third recital:
And whereas the Secretary of State, in accordance with section 5(4) of the Act, has laid a report before each House of Parliament containing a statement of the reasons for his decision to act in a manner falling within paragraphs (b), (d) and (e) of that section:
Now, therefore, the Secretary of State, in exercise of the powers conferred on him by–
(a) sections 1(3) and (4), 2 and 3,
(b) section 9 (as extended by section 3A(1) of the Agricultural Wages Act 19482, section 3A(1) of the Agricultural Wages (Scotland) Act 19493and Article 8A(1) of the Agricultural Wages (Regulation) (Northern Ireland) Order 19774), and
(c) section 51,
of the National Minimum Wage Act 1998 hereby makes the following Regulations:–
PART I
GENERAL AND INTERPRETATION
Citation and commencement
1. These Regulations may be cited as the National Minimum Wage Regulations 1999 and shall come into force on 1st April 1999.
Interpretation
General interpretative provisions
2.—(1) In these Regulations–
“the Act” means the National Minimum Wage Act 1998.
“allowance”, other than in regulation 8(b), means any payment paid by the employer to a worker attributable to a particular aspect of his working arrangements or to his working or personal circumstances that is not consolidated into his standard pay, but does not include an allowance designed to refund a worker in respect of expenses incurred by him in connection with his employment;
“arrangements made by the Government” means–
(a) in England and Wales, arrangements made by the Secretary of State under section 2 of the Employment and Training Act 19735,
(b) in Scotland, arrangements made by the Secretary of State under section 2 of the Employment and Training Act 1973 or by Scottish Enterprise or Highlands and Islands Enterprise under section 2 of the Enterprise and New Towns (Scotland) Act 19906,
(c) in Northern Ireland, arrangements made by the Department of Economic Development under section 1 of the Employment and Training Act (Northern Ireland) 1950.7;
“employer” has the meaning given to it by section 54(4) of the Act but, in relation to a worker (as defined in section 54(3) of the Act), includes in addition, except in paragraph (6) of regulation 12–
(a) an agent or principal in relation to whom, by virtue of section 34(2) of the Act, the provisions of the Act have effect as if there were a worker’s contract between him and an agency worker for the doing of work by the agency worker, and
(b) an employer of a home worker who is a worker by virtue of section 35 of the Act;
“performance bonus” means a performance bonus or other merit payment attributable to the quality or amount of work done in the course of more than one pay reference period, and not therefore payable directly in respect of work done in specific hours;
“the total of reductions” means the total of reductions determined in accordance with regulations 31 to 37;
“the total of remuneration” means the total of money payments determined in accordance with regulation 30;
“pay reference period” has the meaning assigned to it by regulation 10;
“worker” has the same meaning as in section 54(3) of the Act but, except in paragraph (6) of regulation 12, includes in addition–
(a) an agency worker in relation to whom, by virtue of section 34(2) of the Act, the provisions of the Act have effect as if there were a worker’s contract for the doing of his work between him and an agent or principal; and
(b) a home worker who is a worker by virtue of section 35 of the Act.
(2) In these Regulations “work” does not include work (of whatever description) relating to the employer’s family household done by a worker where the conditions in sub-paragraphs (a) or (b) are satisfied.
(a)
(a) The conditions to be satisfied under this sub-paragraph are–
(i) that the worker resides in the family home of the employer for whom he works,
(ii) that the worker is not a member of that family, but is treated as such, in particular as regards to the provision of accommodation and meals and the sharing of tasks and leisure activities;
(iii) that the worker is neither liable to any deduction, nor to make any payment to the employer, or any other person, in respect of the provision of the living accommodation or meals; and
(iv) that, had the work been done by a member of the employer’s family, it would not be treated as being performed under a worker’s contract or as being work because the conditions in sub-paragraph (b) would be satisfied.
(b)
(b) The conditions to be satisfied under this sub-paragraph are–
(i) that the worker is a member of the employer’s family,
(ii) that the worker resides in the family home of the employer,
(iii) that the worker shares in the tasks and activities of the family,
and that the work is done in that context.
(3) In these Regulations “work” does not include work (of whatever description) relating to an employer’s family business, done by a worker who satisfies the conditions in paragraph (4).
(4) The conditions to be satisfied under this paragraph are–
(i)
(i) that the worker is a member of the employer’s family,
(ii)
(ii) that the worker resides in the family home of the employer,
(iii)
(iii) that the worker participates in the running of the family business,
and that the work is done in that context.
The meaning of time work
3. In these Regulations “time work” means–
(a) work that is paid for under a worker’s contract by reference to the time for which a worker works and is not salaried hours work;
(b) work that is paid for under a worker’s contract by reference to a measure of the output of the worker per hour or other period of time during the whole of which the worker is required to work, and is not salaried hours work; and
(c) work that would fall within paragraph (b) but for the fact that the worker is paid by reference to the length of the period of time alone when his output does not exceed a particular level.
The meaning of salaried hours work
4.—(1) In these Regulations “salaried hours work” means work–
(a)
(a) that is done under a contract to do salaried hours work; and
(b)
(b) that falls within paragraph (6) below.
(2) A contract to do salaried hours work is a contract under which a worker–
(a)
(a) is entitled to be paid for an ascertainable basic number of hours in a year (referred to in this regulation as “the basic hours”); and
(b)
(b) is entitled, in respect of hours that consist of or include the basic hours, to be paid an annual salary–
(i) by equal weekly or monthly instalments of wages, or
(ii) by monthly instalments of wages that vary but have the result that the worker is entitled to be paid an equal amount in each quarter,
regardless of the number of hours in respect of which the worker is entitled to the annual salary that are actually worked by him (if any) in any particular week or month; and
(c)
(c) has, in respect of those hours, no entitlement to any payment other than his annual salary or no such entitlement other than an entitlement to a performance bonus.
(3) A contract that satisfies the conditions in paragraph (2) does so–
(a)
(a) whether or not all the basic hours are working hours;
(b)
(b) whether or not the worker can be required under his contract to work, or does in fact work, any hours in addition to the total of hours in respect of which he is entitled to his annual salary, and regardless of any payments made in respect of those additional hours.
(4) Circumstances having the result that in practice a worker may not be or is not paid by equal instalments of wages, or by an equal amount in each quarter, for hours in respect of which he is entitled under his contract only to his annual salary do not prevent the contract from being a contract for salaried hours work, for example–
(a)
(a) that a worker may be awarded a performance bonus,
(b)
(b) that the amount of a worker’s annual salary may be varied,
(c)
(c) that by virtue of regulation 22 or 23 the worker is entitled to the national minimum wage in respect of hours in addition to his basic hours when, under his contract, there is no entitlement to any payment in addition to his annual salary for those additional hours (or to no payment in addition other than a performance bonus), and
(d)
(d) that the worker’s employment may start or terminate during a week or month with the result that the worker is paid a proportionate amount of his annual salary for the week or month in question.
(5) The fact that, by reason of an absence...
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