Features

Work Matters: Policy Q&A: The National Minimum Wage - Take time to check contracts carefully

It pays to keep up with the minimum wage rules - and it could cost you if you don't! Karl Deakin outlines employers' duties.

The national minimum wage (NMW) was introduced in 1999 by the National Minimum Wage Act 1998.

The Act gives workers the right to a specified minimum hourly rate of pay. The actual rate of the NMW is usually updated on an annual basis. The latest increase took effect from 1 October 2010. All workers are entitled to be paid the NMW and it is the duty of the employer to ensure that the correct rate is paid.

The new rates for the NMW are as follows:

A worker's contract and working conditions must be checked carefully to ensure that the NMW Regulations are not inadvertently breached. In particular, there are facets of the NMW Regulations that nurseries must consider when deciding on the level of remuneration for staff. Some common questions relating to NMW are set out below.

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