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Piece workers (‘output’ work)
[ch 4: page 97]Workers (including homeworkers) paid according to the pieces of work or tasks they do (piece workers) have the right to a minimum fair piece rate of 120% of the NMW (regulation 43, NMWR 15). There are strict rules about the information employers must give to workers about how the fair piece work rate is calculated for each task, including details of the “mean hourly output rate” per piece or task (the number of pieces or tasks an average worker can complete in an hour). If the notice does not contain all required information, employers must pay the NMW for every hour worked. Guidance on calculating the NMW for output-based piece workers can be found at the GOV.UK webpage: Minimum wage for different types of work (pay per task or piece of work done).
Taylor review and the NMW
The Taylor review (see Chapter 2) has recommended adapting the NMW regulations on piece rates for use with “platform” workers in the digital economy, to ensure that these workers are paid the NMW. In response, the government has promised to consult on “how definitions of working time can and should apply to platform working”.
Separately, in the context of zero hour contract workers (see page 42), the government has accepted a Taylor review recommendation to ask the Low Pay Commission to “explore the impact” of applying a higher NMW rate for all non-guaranteed hours (while also investigating “alternative means” of tackling wage insecurity).