| Statutory Instruments 1999 No. 584 The National Minimum Wage Regulations 1999 - continued |
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Determining the hours of output work where there is a "fair estimate" agreement
(b) where in the pay reference period the worker has worked for less than the ascertained hours, the total of the number of hours he has worked (including such time).
Unmeasured work
(b) on each day worked by him in the pay reference period on which he was available to carry out his duties for only part of that amount of time, for the proportion of that average number of hours which the part bears to the full amount of time contemplated by the contract.
(2) Where the condition in regulation 28(1) is satisfied the hours of unmeasured work worked by a worker in the pay reference period shall be treated as being the ascertained hours. Payments to the worker to be taken into account 30. The total of remuneration in a pay reference period shall be calculated by adding together-
(b) any money payments paid by the employer to the worker in the following pay reference period in respect of the pay reference period (whether in respect of work or not); (c) any money payment paid by the employer to the worker later than the end of the following pay reference period in respect of work done in the pay reference period, being work in respect of which-
(ii) the worker is not entitled to payment until the completed record has been submitted by him to the employer, and (iii) the worker has failed to submit a record before the fourth working day before the end of that following pay reference period,
provided that the payment is paid in either the pay reference period in which the record is submitted to the employer or the pay reference period after that;
Reductions from payments to be taken into account
(b) in the case of-
(ii) salaried hours work, any money payment paid by the employer to the worker attributable to the hours (if any) by which the number of hours determined under regulation 21(2) is required to be reduced under regulation 21(3) (worker entitled to less than normal proportion of annual salary because of absence from work), whether under the direct application of those regulations or the application of them required by regulation 22(5)(a);
(c) any money payments paid by the employer to the worker in respect of-
(ii) particular output work worked by him in the pay reference period that is paid for at a higher rate than the normal rate applicable to that work by reason of the work being done at a particular time or in particular circumstances, to the extent that the total of those payments exceeds the total of the money payments that would have been payable in respect of the work if the normal rate had been applicable to the work;
(d) any money payment paid by the employer to the worker by way of an allowance other than an allowance attributable to the performance of the worker in carrying out his work;
(2) To the extent that any payment or deduction is required to be subtracted from the total of remuneration by virtue of more than one sub-paragraph of paragraph (1), it shall be subtracted only once.
(b) any deduction made by the employer for his own use and benefit (and accordingly not attributable to any amount paid or payable by the employer to any other person on behalf of the worker), except one specified in regulation 33.
(2) To the extent that any deduction is required to be subtracted by virtue of both sub-paragraphs of paragraph (1), it shall be subtracted only once.
(b) any deduction on account of an advance under an agreement for a loan or an advance of wages; (c) any deduction made to recover an accidental overpayment of wages made to the worker; (d) any deduction in respect of the purchase by the worker of any shares, other securities or share option, or of any share in a partnership.
Payments made by or due from a worker to be subtracted under regulation 31(1)(h)
(b) any payment paid in the pay reference period on account of the worker's expenditure in connection with his employment to the extent that the expenditure consists of a payment to a person other than the employer and is not met, or designed to be met, by a payment paid to him by the employer; (c) any other payment due from the worker to the employer in the pay reference period that the employer retains or is entitled to retain for his own use and benefit except for a payment required to be left out of account by regulation 35.
(2) To the extent that any payment is required to be subtracted by virtue of more than one sub-paragraph of paragraph (1), it shall be subtracted only once.
(b) any payment on account of an advance under an agreement for a loan or an advance of wages; (c) any payment made to refund the employer in respect of an accidental overpayment of wages made by the employer to the worker; (d) any payment in respect of the purchase by the worker of any shares, other securities or share option, or of any share in a partnership; (e) any payment in respect of the purchase by the worker of any goods or services from the employer, unless the purchase is made in order to comply with a requirement in the worker's contract or any other requirement imposed on him by the employer in connection with his employment.
Amount permitted to be taken into account where living accommodation is provided
(b) the amount resulting from multiplying the number of days in the pay reference period for which living accommodation was provided by £2.85.
(2) For the purposes of paragraph (1), living accommodation is provided for a day only if it is provided for the whole of a day from midnight to midnight.
(b) during that period of absence he is paid, for the hours of time work for which he is absent, an amount not less than the amount to which he would have been entitled under these Regulations, but for his absence, (c) the hours of time work worked by the worker in the pay reference period are, by reason of his absence, less than they would be in a pay reference period containing the same number of working days in which the worker worked for the normal number of working hours (and for no additional hours), and (d) the amount of the deduction the employer is entitled to make or payment he is entitled to receive in respect of the provision of living accommodation to the worker during the pay reference period does not increase by reason of the worker's absence from work,
the provisions of paragraph (2) shall apply. Records to be kept by an employer 38. - (1) The employer of a worker who qualifies for the national minimum wage shall keep in respect of that worker records sufficient to establish that he is remunerating the worker at a rate at least equal to the national minimum wage. (2) The records required to be kept under paragraph (1) shall be in a form which enables the information kept about a worker in respect of a pay reference period to be produced in a single document. (3) The employer of a worker who qualifies for the national minimum wage who has entered into any agreement with the worker referred to in regulations 13(2)(d) (accredited training), 25(1) (output work) or 28(1) (unmeasured work), shall keep a copy of that agreement. (4) The employer of a worker who qualifies for an agricultural minimum rate of wages shall, in addition to the records he is required to keep under paragraphs (1) and (3), keep in respect of that worker records sufficient to establish that he is remunerating the worker at a rate at least equal to any agricultural minimum rate of wages applicable to the worker. (5) In paragraph (4), "agricultural minimum rate of wages" means-
(b) in Scotland, a minimum rate of wages fixed under section 3(1)(a) of the Agricultural Wages (Scotland) Act 1949[14]; (c) in Northern Ireland, a minimum rate of wages fixed under Article 4(1) of the Agricultural Wages (Regulation) (Northern Ireland) Order 1977[15].
(6) Where under paragraph (4) an employer is required to keep records in respect of a worker in addition to those he is required to keep under paragraph (1), those additional records shall be in a form which enables the information kept under paragraph (4) about a worker in respect of a pay reference period to be produced in a single document. (This note is not part of the Regulations) These Regulations come into force on 1st April 1999. They set the hourly rate of the national minimum wage at £3.60; prescribe the working hours in respect of which workers must be paid at least the national minimum wage; provide for what payments by employers to workers are to be taken into account in determining whether the national minimum wage has been paid for those hours; and require employers to keep records sufficient to establish that they are paying their workers at least the rate of the national minimum wage and any applicable agricultural minimum rate. Regulations 2 to 10 contain interpretative provisions. In particular, they define the different descriptions of work that may be done by workers as being "time work", "salaried hours work", "output work" and "unmeasured work", and define "the pay reference period" and provide that the work done by certain workers in specified circumstances does not count as work. Regulation 11 sets the hourly rate of the national minimum wage. Regulation 12 provides that certain categories of workers are not entitled to the national minimum wage: they are workers under 18, apprentices (including those on "Modern Apprenticeships") who are under 19 or in their first year of apprenticeship and under 26, and workers on certain Government schemes providing them with training, work experience or temporary work, or assisting them to obtain work. Regulation 13 provides for certain workers to be entitled to the national minimum wage at a lower rate: the hourly rate is £3 for workers aged 18 or more but less than 22, and £3.20 during the first six months of employment for older workers who agree to undergo a specified amount of "accredited training" during those six months. Regulation 14 prescribes the method of determining whether at least the rate of the national minimum wage has been paid. Regulations 15 to 29 establish, for each description of work that may be done by a worker, the hours for which the worker must be paid the national minimum wage and say how the total number of those hours in a pay reference period is to be determined. Regulations 30 to 37 prescribe what payments made by the employer to a worker are to be taken into account in ascertaining whether he has been paid at least the national minimum wage for the total number of hours in a pay reference period determined in accordance with regulations 15 to 29. Regulation 38 requires employers to keep records sufficient to show that they have paid their workers at least the rate of the national minimum wage and any applicable agricultural minimum rate. Notes: [13] 1948 c. 47; section 3 was substituted by Part I of Schedule 9 to the Employment Protection Act 1975 (c. 71); new subsections (2B), (2C) and (8) to (15) are to be inserted by the National Minimum Wage Act 1998 (c. 39), Schedule 2, paragraph 2.back [14] 1949 c. 30; section 3(1) was substituted by Part I of Schedule 10 to the Employment Protection Act 1975 (c. 71); new subsections (2B), (2C) and (8) to (15) are to be inserted by the National Minimum Wage Act 1998 (c. 39), Schedule 2, paragraph 12.back [15] S.I. 1977/2151 (N.I. 22); new paragraphs (1A), (1B) and (13) to (20) are to be inserted into Article 4 by the National Minimum Wage Act 1998 (c. 39), Schedule 2, paragraph 24.back
ISBN 0 11 082126 2
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