NMW avoidance devices


Changes in the UK labour market have resulted in the spread of many exploitative arrangements, often used in combination, that are aimed at avoiding employment rights and obligations, including the NMW. These include:


• false self-employment;


• abusive use of false “expenses”;


• abusive use of zero hours contracts;


• abuse of rules over payment for travel time and standby rules;


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


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