Some NMW avoidance devices




Changes in the UK labour market have resulted in the spread of many exploitative arrangements, often used in combination, aimed at avoiding employment rights and obligations, including the NMW. These devices evolve in response to changes to laws and enforcement practices. Examples currently include:


• requiring workers to work for cash;


• false self-employment;




• topping up wages above the NMW using “profit related pay”;


• topping up wages above the NMW using customer tips collected via a Tronc system;


• requiring workers to pay for their own branded uniform and equipment out of their wages;


• abusive use of zero hours contracts;




• abuse of rules over payment for travel time, standby rules, “security” checks and staff briefings;




• forcing low-paid workers to contract through a personal service company;




• abusive use of intermediary companies, such as payroll and umbrella companies.