National Minimum Wage Bill

House of Commons

Session 1997-98
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Arrangement of Clauses (Contents)

National Minimum Wage Bill

A
B I L L
[AS AMENDED IN STANDING COMMITTEE D]
TO
Make provision for and in connection with a national minimum wage; to provide for the amendment of certain enactments relating to the remuneration of persons employed in agriculture; and for connected purposes.
BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-

Entitlement to the national minimum wage

Workers to be paid at least the national minimum wage.     1. - (1) A person who qualifies for the national minimum wage shall be remunerated by his employer in respect of his work in any pay reference period at a rate which is not less than the national minimum wage.

    (2) A person qualifies for the national minimum wage if he is an individual who-

(a) is a worker;

(b) is working, or ordinarily works, in the United Kingdom under his contract; and

(c) has ceased to be of compulsory school age.

    (3) The national minimum wage shall be such single hourly rate as the Secretary of State may from time to time prescribe.

    (4) For the purposes of this Act a "pay reference period" is such period as the Secretary of State may prescribe for the purpose.

    (5) Subsections (1) to (4) above are subject to the following provisions of this Act.

Regulations relating to the national minimum wage

Determination of hourly rate of remuneration.     2. - (1) The Secretary of State may by regulations make provision for determining what is the hourly rate at which a person is to be regarded for the purposes of this Act as remunerated by his employer in respect of his work in any pay reference period.

    (2) The regulations may make provision for determining the hourly rate in cases where-

(a) the remuneration, to the extent that it is at a periodic rate, is at a single rate;

(b) the remuneration is, in whole or in part, at different rates applicable at different times or in different circumstances;

(c) the remuneration is, in whole or in part, otherwise than at a periodic rate or rates;

(d) the remuneration consists, in whole or in part, of benefits in kind.

    (3) The regulations may make provision with respect to-

(a) circumstances in which, and times at which, a person is to be treated as, or as not, working, and the extent to which a person is to be so treated;

(b) the treatment of periods of paid or unpaid absence from, or lack of, work and of remuneration in respect of such periods.

    (4) The regulations may make provision with respect to-

(a) what is to be treated as, or as not, forming part of a person's remuneration, and the extent to which it is to be so treated;

(b) the valuation of benefits in kind;

(c) the treatment of deductions from earnings;

(d) the treatment of any charges or expenses which a person is required to bear.

    (5) The regulations may make provision with respect to-

(a) the attribution to a period, or the apportionment between two or more periods, of the whole or any part of any remuneration or work, whether or not the remuneration is received or the work is done within the period or periods in question;

(b) the aggregation of the whole or any part of the remuneration for different periods;

(c) the time at which remuneration is to be treated as received or accruing.

    (6) Subsections (2) to (5) above are without prejudice to the generality of subsection (1) above.

    (7) No provision shall be made under this section which treats the same circumstances differently in relation to-

(a) different areas;

(b) different sectors of employment;

(c) undertakings of different sizes;

(d) persons of different ages; or

(e) persons of different occupations.

Exclusion of, and modifications for, certain classes of person.     3. - (1) This section applies to persons who have not attained the age of 26.

    (2) The Secretary of State may by regulations make provision in relation to any of the persons to whom this section applies-

(a) preventing them being persons who qualify for the national minimum wage; or

(b) prescribing an hourly rate for the national minimum wage other than the single hourly rate for the time being prescribed under section 1(3) above.

    (3) No provision shall be made under subsection (2) above which treats persons differently in relation to-

(a) different areas;

(b) different sectors of employment;

(c) undertakings of different sizes; or

(d) different occupations.

Power to add to the persons to whom section 3 applies.     4. - (1) The Secretary of State may by regulations amend section 3 above by adding further descriptions of person to whom that section applies.

    (2) No amendment shall be made under subsection (1) above which treats persons differently in relation to-

(a) different areas;

(b) different sectors of employment;

(c) undertakings of different sizes;

(d) different ages; or

(e) different occupations.

The Low Pay Commission

The first regulations: referral to the Low Pay Commission.     5. - (1) Before making the first regulations under section 1(3) or (4) or 2 above, the Secretary of State shall refer the matters specified in subsection (2) below to the Low Pay Commission for their consideration.

    (2) Those matters are-

(a) what single hourly rate should be prescribed under section 1(3) above as the national minimum wage;

(b) what period or periods should be prescribed under section 1(4) above;

(c) what method or methods should be used for determining under section 2 above the hourly rate at which a person is to be regarded as remunerated for the purposes of this Act;

(d) whether any, and if so what, provision should be made under section 3 above; and

(e) whether any, and if so what, descriptions of person should be added to the descriptions of person to whom section 3 above applies and what provision should be made under that section in relation to persons of those descriptions.

    (3) Where matters are referred to the Low Pay Commission under subsection (1) above, the Commission shall, after considering those matters, make a report to the Prime Minister and the Secretary of State which shall contain the Commission's recommendations about each of those matters.

    (4) If, following the report of the Low Pay Commission under subsection (3) above, the Secretary of State decides-

(a) not to make any regulations implementing the Commission's recommendations, or

(b) to make regulations implementing only some of the Commission's recommendations, or

(c) to prescribe under section 1(3) above a single hourly rate which is different from the rate recommended by the Commission, or

(d) to make regulations which in some other respect differ from the recommendations of the Commission, or

(e) to make regulations which do not relate to a recommendation of the Commission,

the Secretary of State shall lay a report before each House of Parliament containing a statement of the reasons for the decision.

    (5) If the Low Pay Commission fail to make their report under subsection (3) above within the time allowed for doing so under section 7 below, any power of the Secretary of State to make regulations under this Act shall be exercisable as if subsection (1) above had not been enacted.

© Parliamentary copyright 1998
Prepared 18 February 1998

National Minimum Wage Bill

	A B I L L [AS AMENDED IN STANDING COMMITTEE D] TO Make provision for and in connection with a national minimum wage; to provide for the amendment of certain enactments relating to the remuneration of persons employed in agriculture; and for connected purposes. BE IT ENACTED by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-
	Entitlement to the national minimum wage
Workers to be paid at least the national minimum wage.	1. - (1) A person who qualifies for the national minimum wage shall be remunerated by his employer in respect of his work in any pay reference period at a rate which is not less than the national minimum wage.
	(2) A person qualifies for the national minimum wage if he is an individual who-
	(a) is a worker;
	(b) is working, or ordinarily works, in the United Kingdom under his contract; and
	(c) has ceased to be of compulsory school age.
	(3) The national minimum wage shall be such single hourly rate as the Secretary of State may from time to time prescribe.
	(4) For the purposes of this Act a "pay reference period" is such period as the Secretary of State may prescribe for the purpose.
	(5) Subsections (1) to (4) above are subject to the following provisions of this Act.
	Regulations relating to the national minimum wage
Determination of hourly rate of remuneration.	2. - (1) The Secretary of State may by regulations make provision for determining what is the hourly rate at which a person is to be regarded for the purposes of this Act as remunerated by his employer in respect of his work in any pay reference period.
	(2) The regulations may make provision for determining the hourly rate in cases where-
	(a) the remuneration, to the extent that it is at a periodic rate, is at a single rate;
	(b) the remuneration is, in whole or in part, at different rates applicable at different times or in different circumstances;
	(c) the remuneration is, in whole or in part, otherwise than at a periodic rate or rates;
	(d) the remuneration consists, in whole or in part, of benefits in kind.
	(3) The regulations may make provision with respect to-
	(a) circumstances in which, and times at which, a person is to be treated as, or as not, working, and the extent to which a person is to be so treated;
	(b) the treatment of periods of paid or unpaid absence from, or lack of, work and of remuneration in respect of such periods.
	(4) The regulations may make provision with respect to-
	(a) what is to be treated as, or as not, forming part of a person's remuneration, and the extent to which it is to be so treated;
	(b) the valuation of benefits in kind;
	(c) the treatment of deductions from earnings;
	(d) the treatment of any charges or expenses which a person is required to bear.
	(5) The regulations may make provision with respect to-
	(a) the attribution to a period, or the apportionment between two or more periods, of the whole or any part of any remuneration or work, whether or not the remuneration is received or the work is done within the period or periods in question;
	(b) the aggregation of the whole or any part of the remuneration for different periods;
	(c) the time at which remuneration is to be treated as received or accruing.
	(6) Subsections (2) to (5) above are without prejudice to the generality of subsection (1) above.
	(7) No provision shall be made under this section which treats the same circumstances differently in relation to-
	(a) different areas;
	(b) different sectors of employment;
	(c) undertakings of different sizes;
	(d) persons of different ages; or
	(e) persons of different occupations.
Exclusion of, and modifications for, certain classes of person.	3. - (1) This section applies to persons who have not attained the age of 26.
	(2) The Secretary of State may by regulations make provision in relation to any of the persons to whom this section applies-
	(a) preventing them being persons who qualify for the national minimum wage; or
	(b) prescribing an hourly rate for the national minimum wage other than the single hourly rate for the time being prescribed under section 1(3) above.
	(3) No provision shall be made under subsection (2) above which treats persons differently in relation to-
	(a) different areas;
	(b) different sectors of employment;
	(c) undertakings of different sizes; or
	(d) different occupations.
Power to add to the persons to whom section 3 applies.	4. - (1) The Secretary of State may by regulations amend section 3 above by adding further descriptions of person to whom that section applies.
	(2) No amendment shall be made under subsection (1) above which treats persons differently in relation to-
	(a) different areas;
	(b) different sectors of employment;
	(c) undertakings of different sizes;
	(d) different ages; or
	(e) different occupations.
	The Low Pay Commission
The first regulations: referral to the Low Pay Commission.	5. - (1) Before making the first regulations under section 1(3) or (4) or 2 above, the Secretary of State shall refer the matters specified in subsection (2) below to the Low Pay Commission for their consideration.
	(2) Those matters are-
	(a) what single hourly rate should be prescribed under section 1(3) above as the national minimum wage;
	(b) what period or periods should be prescribed under section 1(4) above;
	(c) what method or methods should be used for determining under section 2 above the hourly rate at which a person is to be regarded as remunerated for the purposes of this Act;
	(d) whether any, and if so what, provision should be made under section 3 above; and
	(e) whether any, and if so what, descriptions of person should be added to the descriptions of person to whom section 3 above applies and what provision should be made under that section in relation to persons of those descriptions.
	(3) Where matters are referred to the Low Pay Commission under subsection (1) above, the Commission shall, after considering those matters, make a report to the Prime Minister and the Secretary of State which shall contain the Commission's recommendations about each of those matters.
	(4) If, following the report of the Low Pay Commission under subsection (3) above, the Secretary of State decides-
	(a) not to make any regulations implementing the Commission's recommendations, or
	(b) to make regulations implementing only some of the Commission's recommendations, or
	(c) to prescribe under section 1(3) above a single hourly rate which is different from the rate recommended by the Commission, or
	(d) to make regulations which in some other respect differ from the recommendations of the Commission, or
	(e) to make regulations which do not relate to a recommendation of the Commission,
	the Secretary of State shall lay a report before each House of Parliament containing a statement of the reasons for the decision.
	(5) If the Low Pay Commission fail to make their report under subsection (3) above within the time allowed for doing so under section 7 below, any power of the Secretary of State to make regulations under this Act shall be exercisable as if subsection (1) above had not been enacted.