National Minimum Wage Act 1998

SCHEDULES

Section 8.

SCHEDULE 1 U.K. The Low Pay Commission

Membership U.K.

1 (1) The Low Pay Commission appointed under section 8(9) of this Act (in this Schedule referred to as “the Commission”) shall consist of a chairman and eight other members appointed by the Secretary of State. U.K.

(2) In appointing members, the Secretary of State shall have regard to the desirability of securing that there is such a balance as the Secretary of State considers appropriate between—

(a) members with knowledge or experience of, or interest in, trade unions or matters relating to workers generally;

(b) members with knowledge or experience of, or interest in, employers’ associations or matters relating to employers generally; and

(c) members with other relevant knowledge or experience.

(3) Members shall hold and vacate office in accordance with their terms of appointment, subject to the following provisions.

(4) A member may resign his membership by giving notice to the Secretary of State.

(5) A person who ceases to be a member shall be eligible for re-appointment.

(6) The Secretary of State may by notice to the member concerned remove from office a member who—

(a) has become bankrupt, [F1 has had a debt relief order made in respect of him (under Part 7A of the Insolvency Act 1986),] has made an arrangement with his creditors, has had his estate sequestrated, has granted a trust deed for his creditors or has made a composition contract with his creditors, or

(b) has been absent from two or more consecutive meetings of the Commission otherwise than for a reason approved by them, or

(c) is in the opinion of the Secretary of State unable or unfit to perform his duties as member.

Textual Amendments

F1 Words in Sch. 1 para. 1(6)(a) inserted (1.10.2012) by The Tribunals, Courts and Enforcement Act 2007 (Consequential Amendments) Order 2012 (S.I. 2012/2404), art. 1, Sch. 2 para. 40 (with art. 5)

Financial provisions U.K.

2 (1) The Secretary of State may pay the members of the Commission such remuneration, and such allowances in respect of travel or other expenses properly incurred by them, or in respect of loss of remuneration sustained by them, in the performance of their duties, as the Secretary of State may determine. U.K.

(2) The Secretary of State may determine to pay in respect of a person’s office as member of the Commission—

(a) such pension, allowance or gratuity to or in respect of that person on his retirement or death, or

(b) such contributions or other payment towards the provision of such a pension, allowance or gratuity,

as the Secretary of State may determine.

(3) Where a person ceases to be a member of the Commission otherwise than on the expiry of his term of office and it appears to the Secretary of State that there are special circumstances which make it right for him to receive compensation, the Secretary of State may determine to make a payment to him by way of compensation of such amount as the Secretary of State may determine.

Staff, facilities and money U.K.

3 U.K. The Secretary of State shall provide the Commission with—

(a) such staff,

(b) such accommodation, equipment and other facilities, and

(c) such sums,

as the Secretary of State may reasonably determine are required by the Commission for carrying out their duties in preparing any report on matters referred to them under this Act.

Proceedings U.K.

4 (1) The quorum of the Commission and the arrangements relating to their meetings shall be such as the Commission may determine. U.K.

(2) The validity of proceedings of the Commission is not affected by—

(a) any vacancy among the members, whether occurring by reason of death, resignation or otherwise;

(b) the appointment of a member at any time to fill such a vacancy; or

(c) any defect in the appointment of a member.

Disqualification for House of Commons and Northern Ireland Assembly U.K.

5 (1) The entry set out in sub-paragraph (2) below shall be inserted at the appropriate place in— U.K.

(a) Part II of Schedule 1 to the M1 House of Commons Disqualification Act 1975 (offices disqualifying for membership of the House of Commons); and

(b) Part II of Schedule 1 to the M2 Northern Ireland Assembly Disqualification Act 1975 (offices disqualifying for membership of the Northern Ireland Assembly).

(2) The entry is—

“The Low Pay Commission appointed under section 8(9) of the National Minimum Wage Act 1998.”

Marginal Citations

M1 1975 c. 24.

M2 1975 c. 25.

Section 47.

SCHEDULE 2 U.K. Amendments relating to remuneration etc of agricultural workers

F2 Part I U.K. The Agricultural Wages Act 1948

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Sch. 2 Pt. I repealed (25.6.2013 for the purpose of the repeal of Sch. 2 para. 2, 1.10.2013 for E. in so far as not already in force) by Enterprise and Regulatory Reform Act 2013 (c. 24), s. 103(3), Sch. 20 para. 2; S.I. 2013/1455, arts. 2(c), 3(b), Sch. 1, Sch. 2 (with art. 4(2)(4))

Part II U.K. The Agricultural Wages (Scotland) Act 1949

11 U.K. The M3 Agricultural Wages (Scotland) Act 1949 shall be amended in accordance with this Part of this Schedule.

Marginal Citations

M3 1949 c. 30.

Section 3 U.K.

12 (1) Section 3 (power of Scottish Agricultural Wages Board to fix minimum rates of wages, holidays to be allowed etc.) shall be amended as follows. U.K.

(2) After subsection (2A) there shall be inserted—

“(2B) No minimum rate fixed under this section which is an hourly rate shall be less than the national minimum wage.

(2C) No minimum rate fixed under this section which is a rate other than an hourly rate shall be such as to yield a less amount of wages for each hour worked than the hourly amount of the national minimum wage.”

(3) After subsection (7) there shall be added—

“(8) If the Board makes, or purports to make, an order fixing a minimum rate under this section—

(a) which is an hourly rate but which is lower than the national minimum wage in force when that minimum rate comes into effect, or

(b) which is a rate other than an hourly rate but which is such as to yield a less amount of wages for each hour worked than the hourly amount of the national minimum wage in force when that minimum rate comes into effect,

the Board shall be taken to have made an order fixing in place of that minimum rate a minimum rate equal to the national minimum wage or, as the case may be, a minimum rate such as to yield an amount of wages for each hour worked equal to the hourly amount of the national minimum wage.

(9) If, at any time after a minimum rate which is an hourly rate comes into effect under this section, the national minimum wage becomes higher than that minimum rate, then, as respects any period beginning at or after that time, the Board shall be taken to have made an order fixing in place of that minimum rate a minimum rate equal to the national minimum wage.

(10) If, at any time after a minimum rate other than an hourly rate comes into effect under this section, the national minimum wage is increased to such a level that that minimum rate yields a less amount of wages for each hour worked than the hourly amount of the national minimum wage, then, as respects any period beginning at or after that time, the Board shall be taken to have made an order fixing in place of that minimum rate a minimum rate such as to yield an amount of wages for each hour worked equal to the hourly amount of the national minimum wage.

(11) Subsections (8) to (10) of this section are without prejudice to the power of the Board to make further orders under this section fixing any minimum rates.

(12) Where an order under this section fixes any particular minimum rate of wages by reference to two or more component rates, of which—

(a) one is the principal component, and

(b) the other or others are supplemental or additional components,

(as in a case where the minimum rate for night work is fixed as the sum of the minimum rate payable in respect of work other than night work and a supplemental or additional minimum rate in respect of working at night) the national minimum wage provisions of this section apply in relation to the principal component rate and not the supplemental or additional component rates.

(13) The national minimum wage provisions of this section do not apply in relation to any minimum rate which is in the nature of an allowance payable in respect of some particular responsibility or circumstance (as in a case where a minimum rate is fixed in respect of being required to keep a dog).

(14) The national minimum wage provisions of this section do not apply in relation to any minimum rate fixed under this section—

(a) by virtue of subsection (2)(d) of this section, or

(b) by virtue of section 67 of the M4 Agriculture Act 1967 (sick pay),

unless and to the extent that regulations under section 2 of the National Minimum Wage Act 1998 make provision which has the effect that circumstances or periods in respect of which the minimum rate in question is required to be paid to a worker are treated as circumstances in which, or times at which, a person is to be regarded as working.

(15) In this section “the national minimum wage provisions of this section” means subsections (2B), (2C) and (8) to (10) of this section.”

Marginal Citations

M4 1967 c. 22.

Enforcement U.K.

13 U.K. After section 3 there shall be inserted—

“3A Enforcement.

(1) The enforcement provisions of the National Minimum Wage Act 1998 shall have effect for the purposes of this Act as they have effect for the purposes of that Act, but with the modifications specified in subsection (3) of this section.

(2) In subsection (1) of this section “the enforcement provisions of the National Minimum Wage Act 1998” means the following provisions of that Act—

(a) sections 9 to 11 (records);

(b) section 14 (powers of officers);

(c) sections 17 and 19 to 22 (enforcement of right to national minimum wage);

(d) sections 23 and 24 (right not to suffer detriment);

(e) section 28 (evidence: reversal of burden of proof in civil proceedings);

(f) sections 31, 32 and 33(4) and (5) (offences);

(g) section 48 (superior employees); and

(h) section 49 (restriction on contracting out).

(3) In the application of any provision of the National Minimum Wage Act 1998 by subsection (1) of this section—

(a) any reference to that Act, other than a reference to a specific provision of it, includes a reference to this Act;

(b) any reference to a worker (within the meaning of that Act) shall be taken as a reference to a worker employed in agriculture (within the meaning of this Act);

(c) any reference to a person (however described) who qualifies for the national minimum wage shall be taken as a reference to a worker employed in agriculture;

(d) subject to paragraph (c) of this subsection, any reference to the national minimum wage, other than a reference to the hourly amount of the national minimum wage, shall be taken as a reference to the minimum rate applicable under this Act;

(e) subject to paragraph (c) of this subsection, any reference to qualifying for the national minimum wage shall be taken as a reference to being entitled to the minimum rate applicable under this Act; and

(f) any reference to a pay reference period shall be disregarded.

(4) In section 104A of the M5 Employment Rights Act 1996 (unfair dismissal: national minimum wage) in subsection (1)(c)—

(a) any reference to a person qualifying for the national minimum wage includes a reference to a person being or becoming entitled to a minimum rate applicable under this Act; and

(b) any reference to a person qualifying for a particular rate of national minimum wage includes a reference to a person being or becoming entitled to a particular minimum rate applicable under this Act.”

Commencement Information

I1 Sch. 2 para. 13 partly in force; para. 13 not in force at Royal Assent, see s. 56(2); para. 13 (except the reference mentioned) in force at 1.4.1999 by S.I. 1999/685, art. 2, Sch.

Marginal Citations

M5 1996 c. 18.

Section 4 U.K.

14 U.K. In section 4 (enforcement of wages and holiday orders) the following provisions shall cease to have effect—

(a) in subsection (1)—

(i) paragraphs (a), (b) and (d); and

(ii) the words “and, in the case of an offence consisting of a failure to pay wages” onwards;

(b) subsection (2);

(c) in subsection (3), the words “has paid wages at not less than the minimum rate of” and “, as the case may be”; and

(d) subsection (4).

Section 5 U.K.

F3 15 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 Sch. 2 para. 15 repealed (S.) (1.10.2004) by The Agricultural Wages (Permits to Infirm and Incapacitated Persons) (Repeals) (Scotland) Regulations 2004 (S.S.I. 2004/384), reg. 1(1), sch.

Section 11 U.K.

16 U.K. Section 11(1)(a) (invalidity of certain agreements) shall cease to have effect.

Section 12 U.K.

17 (1) Section 12 (officers) shall be amended as follows. U.K.

(2) Subsection (4)(a) (power to institute civil proceedings on behalf of worker on account of payment of wages at less than the applicable minimum rate etc) shall cease to have effect.

(3) At the end of the section there shall be added—

“(7) The powers conferred by subsection (3) of this section are not exercisable in any case where corresponding or similar powers conferred by any of the enforcement provisions of the National Minimum Wage Act 1998, as they have effect for the purposes of this Act, are exercisable by virtue of section 3A of this Act.

(8) In subsection (7) of this section, “the enforcement provisions of the National Minimum Wage Act 1998” has the same meaning as in subsection (1) of section 3A of this Act.”

Information obtained by national minimum wage officers U.K.

18 U.K. After section 15 there shall be inserted—

“15A Information obtained by national minimum wage officers.

(1) This section applies to information which has been obtained by an officer acting for the purposes of the National Minimum Wage Act 1998.

(2) This section does not apply to any information to the extent that the information relates to—

(a) any failure to allow holidays directed to be allowed by an order under section 3 of this Act; or

(b) any terms and conditions of employment fixed by such an order by virtue of subsection (1)(c) of that section.

(3) Information to which this section applies may, with the authority of the relevant Minister, be supplied to the Secretary of State for use for any purpose relating to this Act.

(4) Information supplied under subsection (3) of this section shall not be supplied by the recipient to any other person or body unless—

(a) it could be supplied to that person or body under that subsection; or

(b) it is supplied for the purposes of any civil or criminal proceedings relating to this Act;

and shall not be supplied in those circumstances without the authority of the relevant Minister.

(5) This section does not limit the circumstances in which information may be supplied or used apart from this section.

(6) In this section “the relevant Minister” means the Minister of the Crown with the function of appointing officers under section 13(1)(a) of the National Minimum Wage Act 1998.”

Section 17 U.K.

19 (1) Section 17 (interpretation) shall be amended as follows. U.K.

(2) In subsection (1) the following definition shall be inserted in the appropriate place—

• ““the national minimum wage” means the single hourly rate for the time being in force by virtue of regulations under section 1(3) of the National Minimum Wage Act 1998, but this definition is subject to subsection (1A) of this section;”.

(3) After subsection (1) there shall be inserted—

“(1A) If, in the case of persons of any description, regulations under subsection (2) of section 3 of the National Minimum Wage Act 1998—

(a) prevent them being persons who (within the meaning of that Act) qualify for the national minimum wage; or

(b) prescribe a rate (“the reduced rate”) for the national minimum wage other than the single hourly rate for the time being prescribed under section 1(3) of that Act,

this Act shall have effect in relation to persons of that description as if in a case falling within paragraph (a) above the national minimum wage were nil and in a case falling within paragraph (b) above the national minimum wage were the reduced rate.”

Relationship between national minimum wage and agricultural wages legislation U.K.

20 U.K. After section 17 there shall be inserted—

“17A Relationship between this Act and the National Minimum Wage Act 1998.

(1) Except so far as expressly provided by this Act, nothing in the National Minimum Wage Act 1998 or in regulations made under that Act affects the operation of this Act.

(2) This Act is subject to—

(a) section 46 of the National Minimum Wage Act 1998; and

(b) section 47 of that Act and any regulations made under that section.”

Part III U.K. The Agricultural Wages (Regulation) (Northern Ireland) Order 1977

21 U.K. The M6 Agricultural Wages (Regulation) (Northern Ireland) Order 1977 shall be amended in accordance with this Part of this Schedule.

Marginal Citations

M6 S.I. 1977/2151 (N.I.22).

Article 2 U.K.

22 (1) Article 2 (interpretation) shall be amended as follows. U.K.

(2) In paragraph (2) the following definition shall be inserted at the appropriate place—

• ““the national minimum wage” means the single hourly rate for the time being in force by virtue of regulations under section 1(3) of the National Minimum Wage Act 1998, but this definition is subject to paragraph (2A);”.

(3) After paragraph (2) there shall be inserted—

“(2A) If, in the case of persons of any description, regulations under subsection (2) of section 3 of the National Minimum Wage Act 1998—

(a) prevent them being persons who (within the meaning of that Act) qualify for the national minimum wage, or

(b) prescribe a rate (“the reduced rate”) for the national minimum wage other than the single hourly rate for the time being prescribed under section 1(3) of that Act,

this Order shall have effect in relation to persons of that description as if in a case falling within sub-paragraph (a) the national minimum wage were nil and in a case falling within sub-paragraph (b) the national minimum wage were the reduced rate.”

Relationship between the national minimum wage and agricultural wages legislation U.K.

23 U.K. After Article 2 there shall be inserted—

“2A Relationship between this Order and the National Minimum Wage Act 1998.

(1) Except so far as expressly provided by this Order, nothing in the National Minimum Wage Act 1998 or in regulations made under that Act affects the operation of this Order.

(2) This Order is subject to—

(a) section 46 of the National Minimum Wage Act 1998; and

(b) section 47 of that Act and any regulations made under that section.”

Article 4 U.K.

24 (1) Article 4 (power of Agricultural Wages Board for Northern Ireland to fix minimum rates of wages) shall be amended as follows. U.K.

(2) After paragraph (1) there shall be inserted—

“(1A) No minimum rate fixed under this Article which is an hourly rate shall be less than the national minimum wage.

(1B) No minimum rate fixed under this Article which is a rate other than an hourly rate shall be such as to yield a less amount of wages for each hour worked than the hourly amount of the national minimum wage.”

(3) After paragraph (12) there shall be added—

“(13) If the Board makes, or purports to make, an order fixing a minimum rate under this Article—

(a) which is an hourly rate but which is lower than the national minimum wage in force when that minimum rate comes into effect, or

(b) which is a rate other than an hourly rate but which is such as to yield a less amount of wages for each hour worked than the hourly amount of the national minimum wage in force when that minimum rate comes into effect,

the Board shall be taken to have made an order fixing in place of that minimum rate a minimum rate equal to the national minimum wage or, as the case may be, a minimum rate such as to yield an amount of wages for each hour worked equal to the hourly amount of the national minimum wage.

(14) If, at any time after a minimum rate which is an hourly rate comes into effect under this Article, the national minimum wage becomes higher than that minimum rate, then, as respects any period beginning at or after that time, the Board shall be taken to have made an order fixing in place of that minimum rate a minimum rate equal to the national minimum wage.

(15) If, at any time after a minimum rate other than an hourly rate comes into effect under this Article, the national minimum wage is increased to such a level that that minimum rate yields a less amount of wages for each hour worked than the hourly amount of the national minimum wage, then, as respects any period beginning at or after that time, the Board shall be taken to have made an order fixing in place of that minimum rate a minimum rate such as to yield an amount of wages for each hour worked equal to the hourly amount of the national minimum wage.

(16) Paragraphs (13) to (15) are without prejudice to the power of the Board to make further orders under this Article fixing any minimum rates.

(17) Where an order under this Article fixes any particular minimum rate of wages by reference to two or more component rates, of which—

(a) one is the principal component, and

(b) the other or others are supplemental or additional components,

(as in a case where the minimum rate for night work is fixed as the sum of the minimum rate payable in respect of work other than night work and a supplemental or additional minimum rate in respect of working at night) the national minimum wage provisions of this Article apply in relation to the principal component rate and not the supplemental or additional component rates.

(18) The national minimum wage provisions of this Article do not apply in relation to any minimum rate which is in the nature of an allowance payable in respect of some particular responsibility or circumstance (as in a case where a minimum rate is fixed in respect of being required to keep a dog).

(19) The national minimum wage provisions of this Article do not apply in relation to any minimum rate fixed under this Article by virtue of Article 5 or 8(5), unless and to the extent that regulations under section 2 of the National Minimum Wage Act 1998 make provision which has the effect that circumstances or periods in respect of which the minimum rate in question is required to be paid to a worker employed in agriculture are treated as circumstances in which, or times at which, a person is to be regarded as working.

(20) In this Article “the national minimum wage provisions of this Article” means paragraphs (1A), (1B) and (13) to (15).”

Article 6 U.K.

F4 25 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 2 para. 25 repealed (N.I.) (1.12.2006) by The Agricultural Wages (Abolition of Permits to Infirm and Incapacitated Persons) Regulations (Northern Ireland) 2006 (S.R. 2006/429), reg. 1, Sch.

Enforcement U.K.

26 U.K. After Article 8 there shall be inserted—

“ Enforcement. U.K.

8A (1) The enforcement provisions of the National Minimum Wage Act 1998 shall have effect for the purposes of this Order as they have effect for the purposes of that Act, but with the modifications specified in paragraphs (3) and (4).

(2) In paragraph (1) “the enforcement provisions of the National Minimum Wage Act 1998” means the following provisions of that Act—

(a) sections 9 to 11 (records);

(b) section 14 (powers of officers);

(c) sections 17 and 19 to 22 (enforcement of right to national minimum wage);

(d) sections 23 and 24 (right not to suffer detriment);

(e) section 28 (evidence: reversal of burden of proof in civil proceedings);

(f) sections 31 to 33 (offences);

(g) section 48 (superior employers); and

(h) section 49 (restriction on contracting out).

(3) In the application of any provision of the National Minimum Wage Act 1998 by paragraph (1)—

(a) any reference to that Act, other than a reference to a specific provision of it, includes a reference to this Order;

(b) any reference to a worker (within the meaning of that Act) shall be taken as a reference to a worker employed in agriculture (within the meaning of this Order);

(c) any reference to a person (however described) who qualifies for the national minimum wage shall be taken as a reference to a worker employed in agriculture;

(d) subject to sub-paragraph (c), any reference to the national minimum wage, other than a reference to the hourly amount of the national minimum wage, shall be taken as a reference to the minimum rate applicable under this Order;

(e) subject to sub-paragraph (c), any reference to qualifying for the national minimum wage shall be taken as a reference to being entitled to the minimum rate applicable under this Order; and

(f) any reference to a pay reference period shall be disregarded.

(4) In the application of section 33 of the National Minimum Wage Act 1998 (proceedings for offences) by paragraph (1), any reference to the Secretary of State shall be taken to include a reference to the Department of Agriculture for Northern Ireland.

(5) In Article 135A of the M7 Employment Rights (Northern Ireland) Order 1996 (unfair dismissal: national minimum wage) in paragraph (1)(c)—

(a) any reference to a person qualifying for the national minimum wage includes a reference to a person being or becoming entitled to a minimum rate applicable under this Order; and

(b) any reference to a person qualifying for a particular rate of national minimum wage includes a reference to a person being or becoming entitled to a particular minimum rate applicable under this Order.”

Commencement Information

I2 Sch. 2 para. 26 partly in force; para. 26 not in force at Royal Assent, see s. 56(2); para. 26 (except the reference mentioned in the Sch. of the commencing S.I.) in force at 1.4.1999 by S.I. 1999/685, art. 2, Sch.

Marginal Citations

M7 S.I. 1996/1919 (N.I.16).

Information obtained by national minimum wage officers U.K.

27 U.K. After Article 11 there shall be inserted—

“11A Information obtained by national minimum wage officers.

(1) This Article applies to information which has been obtained by an officer acting for the purposes of the National Minimum Wage Act 1998.

(2) This Article does not apply to any information to the extent that the information relates to any failure to allow holidays in accordance with Article 8.

(3) Information to which this Article applies may, with the authority of the Secretary of State, be supplied to the Department for use for any purpose relating to this Order.

(4) Information supplied under paragraph (3) shall not be supplied by the recipient to any other person or body unless—

(a) it could be supplied to that person or body under that paragraph; or

(b) it is supplied for the purposes of any civil or criminal proceedings relating to this Order;

and shall not be supplied in those circumstances without the authority of the Secretary of State.

(5) This Article does not limit the circumstances in which information may be supplied or used apart from this Article.”

Section 53.

SCHEDULE 3 U.K. Repeals and revocations

Commencement Information

I3 Sch. 3 partly in force; Sch. 3 not in force at Royal Assent see s. 56(2); Sch. 3 in force for certain purposes at 1.11.1998 by S.I. 1998/2574, art. 2(1), Sch. 1; Sch. 3 in force for certain purposes at 1.4.1999 by S.I. 1999/685, arts. 2, 3, Sch.

Reference	Short title or title	Extent of repeal or revocation
11 & 12 Geo. 6 c. 47.	The Agricultural Wages Act 1948.	In section 4, in subsection (1), paragraphs (a), (b) and (d) and the words from “and, in the case of an offence consisting of a failure to pay wages” onwards, subsection (2), in subsection (3), the words “has paid wages at not less than the minimum rate or” and “as the case may be”, and subsection (4).
		Section 7(2).
		Section 11(1)(a).
		In section 12(5)(a), the words “on account of the payment of wages to him at less than the minimum rate applicable or”.
12 & 13 Geo. 6 c. 30.	The Agricultural Wages (Scotland) Act 1949.	In section 4, in subsection (1), paragraphs (a), (b) and (d) and the words “and, in the case of an offence consisting of a failure to pay wages” onwards, subsection (2), in subsection (3), the words “has paid wages at not less than the minimum rate of” and “, as the case may be” and subsection (4).
		Section 11(1)(a).
		Section 12(4)(a).
1996 c. 17.	The Employment Tribunals Act 1996.	In section 21(1)(f), the word “or”.
1996 c. 18.	The Employment Rights Act 1996.	In section 108(3), the word “or” at the end of paragraph (g).
		In section 109(2), the word “or” at the end of paragraph (g).
S.I. 1996/1919 (N.I.16).	The Employment Rights (Northern Ireland) Order 1996.	In Article 142(2), the word “or” at the end of sub-paragraph (b).