LRD guides and handbook December 2020

The National Minimum Wage 2021 - a trade union guide

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Introduction [pages 3-4] (788 words)

The National Minimum Wage, (NMW), which, since 2016, has included the National Living Wage (NLW), has been the UK’s statutory wage floor since 1998. ...
Open access

Chapter 1

1. Current rates and who is eligible [ch 1: pages 5-6] (743 words)

The National Minimum Wage (NMW) is the UK’s statutory wage floor. It was established in 1998 with passing of the National Minimum Wage Act 1998 by ...
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Who is eligible? [ch 1: pages 7-8] (594 words)

Who is exempt from the National Minimum Wage regulations [ch 1: pages 8-9] (398 words)

Chapter 2

2. What is and is not included in the NMW calculation? [ch 2: page 10] (210 words)

The National Minimum Wage Act 1998 (NMWA), and the National Minimum Wage Regulations 2015 (NMWR) specify how the NMW should be calculated, including ...
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Does the worker have the right documents? [ch 2: page 10] (200 words)

What is the pay reference period? [ch 2: pages 11-12] (520 words)

Working out gross pay: what counts towards the NMW? [ch 2: page 12] (130 words)

What cannot count towards the NMW? [ch 2: pages 12-14] (627 words)

What can an employer legally deduct? [ch 2: page 14] (208 words)

What counts as working time hours under the NMW? [ch 2: pages 14-15] (502 words)

Further resources [ch 2: pages 16] (49 words)

Chapter 3

3. What to do if there is a breach of the NMW (85 words)

Both current and former employees have the right to claim back pay under National Minimum Wage legislation if the NMW has been underpaid. ...
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Steps that a worker or their representative should take [ch 3: pages 17-20] (1,265 words)

How does HMRC enforce the NMW? [ch 3: pages 20-21] (449 words)

Chapter 4

4. Which workers are covered by the NMW? [ch 4: page 22] (48 words)

This chapter covers the key statistics related to the NMW, the types of workers that receive it and the type of work they do. The numbers cover a ...
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An estimated 7% of all jobs are paid at one of the minimum wage rates [ch 4: page 22] (107 words)

Characteristics of NMW workers [ch 4: page 22] (219 words)

Retail, hospitality and catering have the most NMW jobs [ch 4: page 23] (222 words)

Characteristics of the low paying sectors [ch 4: pages 23-24] (167 words)

Northern Ireland has the most NMW jobs, London the least [ch 4: page 24] (101 words)

Impact on collective bargaining [ch 4: pages 24-25] (640 words)

The impact of COVID-19 pushed many below the NMW [ch 4: page 26] (192 words)

Chapter 5

5. 2021 and beyond: the direction of travel for NMW policy [ch 5: page 27] (42 words)

This chapter sets out the direction of travel of travel of NMW policy, how it has developed since 2016 and where it is headed in the future. ...
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The Low Pay Commission and its remit [ch 5: pages 27-28] (649 words)

An emergency brake [ch 5: page 28] (122 words)

The LPC reduces NMW uplift for 2021 but sticks to long-term target [ch 5: pages 28-29] (377 words)

The union response [ch 5: pages 29-30] (243 words)

A higher rate [ch 5: page 30] (246 words)

A single rate for all age groups [ch 5: pages 30-31] (194 words)

Other changes [ch 5: page 31] (89 words)

Possible new EU Directive on the minimum wage [ch 5: pages 31-32] (395 words)

Chapter 6

6. Threats to the NMW as it is [ch 6: page 33] (64 words)

This chapter covers the different ways in which the integrity of National Minimum Wage (NMW) policy is being undermined. ...
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Underpayment of the NMW is high [ch 6: page 33] (263 words)

Poor enforcement [ch 6: pages 34-35] (801 words)

The low paid and bogus self-employed [ch 6: pages 36-37] (669 words)

Outsourced and agency workers also at risk of non-compliance [ch 6: pages 37-38] (400 words)

Chapter 7

7. Arguments for a higher NMW [ch 7: page 39] (75 words)

The aim of raising the NMW is to help the lowest paid and to combat the alarming rise in ‘in-work’ poverty. However, a higher minimum wage ...
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Failure to keep up with the cost of living [ch 7: pages 39-40] (750 words)

Debunking the government responses to calls for the rise to the NMW [ch 7: pages 40-43] (1,069 words)

Chapter 8

8. Organising for a Real Living Wage and beyond [ch 8: pages 44-46] (1,011 words)

Alongside the push to improve NMW policy at government level, since the early 2000s unions have also campaigned at the grassroots for workers on or ...
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Health and social care workers deserve a Living Wage [ch 8: pages 46-47] (338 words)

Case study one: PCS win for outsourced workers at BEIS [ch 8: pages 47-48] (706 words)

Case study two: From NMW to in-house — the St Mary’s Hospital workers [ch 8: pages 48-50] (678 words)

What reps can do now [ch 8: page 50] (70 words)

Further information

9. Further information (109 words)

For further information on the NMW, see: ...
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