Draft Regulations laid before Parliament in accordance with section 51(5) of the National Minimum Wage Act 1998 for approval by resolution of each House of Parliament
Draft Statutory Instruments
TERMS AND CONDITIONS OF EMPLOYMENT
Made
2003
Coming into force
1st October 2003
Whereas a draft of the following Regulations was laid before Parliament in accordance with section 51(5) of the National Minimum Wage Act 1998(1) and approved by resolution of each House of Parliament:
Now, therefore, the Secretary of State, in exercise of the powers conferred upon her by sections 1(3), 2, 3 and 51 of the National Minimum Wage Act 1998 hereby makes the following Regulations:
1.—(1) These Regulations may be cited as the National Minimum Wage Regulations 1999 (Amendment) Regulations 2003 and shall come into force on 1st October 2003.
(2) In these Regulations, the “principal regulations” means the National Minimum Wage Regulations 1999(2).
2. In regulation 11(3) of the principal regulations (the rate of the national minimum wage), for “£4.20” substitute “£4.50”.
3. In regulation 13 of the principal regulations (the rate for workers who qualify for the national minimum wage at a different rate)—
(a)in paragraph (1)(4), for “£3.60” substitute “£3.80”; and
(b)in paragraph (2)(5), for “£3.60” substitute “£3.80”.
4. For regulation 36(1) of the principal regulations (amount permitted to be taken into account where living accommodation is provided) substitute—
“(1) The amount referred to in regulations 30(d) and 31(1)(i) is the amount resulting from multiplying the number of days in the pay reference period for which accommodation was provided by £3.50.”(6)
5. After regulation 36 of the principal regulations insert—
36A. Any amounts required to be determined for the purpose of regulations 30(d) or 31(1)(i) of these regulations in respect of any pay reference period shall be determined in accordance with the regulations as they are in force on the first day of the pay reference period.”
6. The amendments to the principal regulations made by regulation 4 do not apply in relation to any pay reference period (within the meaning assigned to that expression by regulation 10 of the principal regulations) beginning before 1st October 2003.
7. The regulations specified in the first column of the Schedule to these Regulations are hereby revoked to the extent specified in the second column thereof.
Parliamentary Under Secretary of State for Employment Relations, Competition and Consumers
Department of Trade and Industry
2003
Regulation 7
(This note is not part of the Regulations)
These Regulations, which amend the National Minimum Wage Regulations 1999 (“the principal regulations”) and come into force on 1st October 2003, increase the minimum hourly rate of the national minimum wage from £4.20 to £4.50. They also increase the rate to be paid to those (including workers aged between 18 and 21) who qualify for the national minimum wage at a different rate, from £3.60 to £3.80.
In addition, the Regulations amend the principal regulations by altering the provisions relating to the valuation of accommodation in situations where a worker is provided with accommodation by the employer. The effect of this alteration is to provide (when valuing accommodation to determine whether the national minimum wage has been paid) that accommodation will carry a fixed amount per day value. This fixed daily amount is £3.50. The previous additional valuation method based on the number of hours worked will no longer be applicable.
The Regulations further amend the principal regulations by inserting a new regulation 36A. This provides that, in connection with the valuation of accommodation, any amounts to be calculated in respect of any pay reference period (which is defined in regulation 10 of the principal regulations) shall be calculated in accordance with the principal regulations in force on the first day of the pay reference period.
The Regulations contain transitional provisions which have the effect that the revised valuation of accommodation regulations only apply in relation to pay reference periods beginning on or after 1st October 2003.
The Regulations contain a revocation provision. This, firstly, revokes previous provisions relating to the valuation of accommodation and, secondly, revokes previous provisions which increased the minimum hourly rate of the national minimum wage and the rate paid to those who qualified for the national minimum wage at a different rate.
A Regulatory Impact Assessment of the estimated costs and benefits of the rate increases has been placed in the Libraries of both Houses of Parliament. Copies are available to the public from Employment Relations, P&S, Department of Trade and Industry, 1 Victoria Street, London SW1H OET and on the DTI website at www.dti.gov.uk.