Wage law

The wage law, commonly referred to as ‘minimum wage’ is a legal right to a certain (hourly) pay, below which an employer is not permitted to pay, unless certain exceptions apply. The wage law covers nearly all UK employees and was most recently enacted as the National Minimum Wage on 1 April 1999.

The rationale behind the law is that normally employers are in much stronger bargaining positions than employees, and knowing that (in certain jobs and among certain sections of society) they can offer their employees wages which might not guarantee the employee a decent standard of living. It was therefore decided that employers should be mandated to pay above a certain level.

According to the wage law an employer must pay an employee an hourly rate, but the manner in which the hours are calculated depends on the type of work the employee does, the salaried hours they work and whether output can be measured or not. Employers are legally required to maintain records showing that their workers are being paid above the wage-law minimum, although existing records (such as payroll) are generally sufficient. For example, employers that pay a salary well beyond what it required by the wage law can simply show Pay-As-You-Earn slips to satisfy this requirement.

If you are worried that you are not receiving a fair wage, or if you are concerned that your company is in violation of the wage law, it is a good idea to look into the law’s details. There are certain exceptions which may make the wage law irrelevant to a situation. For example, a student on a work placement which lasts less than a year normally doesn’t qualify for the minimum wage.

If you would like to obtain legal advice on wage law, Contact Law can put you in touch with a local specialist Employment Solicitor free of charge. So, if you have any questions or would like our help in finding local Employment Solicitors please call us on 0800 1777 162 or complete the web-form above.