‘The great contribution made by the introduction of a national minimum wage is that no one in the country can receive less than the prescribed rate.’

Discuss.

• You should point out that NMWA 1998 applies nationally and covers a broad range of workers. However, it provides standard and development rates that discriminate on the grounds of age.
• You should note that the Regulations provide for a range of exclusions, for example regs 2 and 12.
• You should also state that certain deductions from the minimum wage are permissible, for example in relation to accommodation under reg 36.
• You should point out that the calculation of hours worked can be complicated under regs 15–18, which may make it difficult to identify whether or not the minimum wage is being paid.
• You should observe that workers may be entitled to the minimum wage during periods when they are not actually working, for example during waiting time between activities. You might refer to British Nursing Association v Inland Revenue [2002] on p 38.
• In relation to enforcement, you should state that the reverse burden of proof in reg 28 favours workers and that s 19 NMWA 1998 gives HMRC powers to ensure employers comply with the legislation. You might also point out that prosecutions of employers are extremely rare.
• You should also record that ERA 1996 provides protection against victimisation for asserting rights under NMWA 1998.
• For more examination material you should read Questions and Answers Employment Law 2018 by Roseanne Russell, published by Oxford University Press.