National Minimum Wage Act 1998

national minimum wageminimum wageNMWA 1998legal minimum wageUnited Kingdom in 1998introduction of theminimum wage in the United Kingdomnational minimumNational Minimum Wage ActNational Minimum Wage Act of 1998
National Minimum Wage Act 1998 creates a minimum wage across the United Kingdom.wikipedia
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1997 United Kingdom general election

1997 general election19971997 election
It was a flagship policy of the Labour Party in the UK during their successful 1997 general election campaign. Labour had returned to government in 1997 after eighteen years in opposition, and a minimum wage had been a party policy since as far back as 1986, under the leadership of Neil Kinnock.
Labour made several campaign pledges such as the creation of a National Minimum Wage, devolution referendums for Scotland and Wales and promised greater economic competence than the Conservatives, who were unpopular following the events of Black Wednesday in 1992; from then until 1997, the party consistently trailed behind Labour in the opinion polls.

Minimum wage

minimum wagesminimum-wagefederal minimum wage
National Minimum Wage Act 1998 creates a minimum wage across the United Kingdom. No national minimum wage existed prior to 1998, although there were a variety of systems of wage controls focused on specific industries under the Trade Boards Act 1909.
In the United States, statutory minimum wages were first introduced nationally in 1938, and they were reintroduced and expanded in the United Kingdom in 1998.

National Living Wage

On 1 April 2016, an amendment to the act attempted an obligatory "National Living Wage" for workers over 25, which was implemented at a significantly higher minimum wage rate of £7.20 (then up to £7.50 from April 2017, £7.83 from April 2018 and £8.21 from April 2019), and is expected to rise to at least £9 per hour by 2020. In his 2015 budget, George Osborne announced that from 1 April 2016, a further rate known as the "National Living Wage" ("NLW") will apply to those aged 25 or over and will be at the rate of £7.20 per hour.
It was implemented at a significantly higher rate than the preceding national minimum wage rate, and was expected (in 2015) to rise to at least £9 per hour by 2020.

Labour Party (UK)

Labour PartyLabourBritish Labour Party
It was a flagship policy of the Labour Party in the UK during their successful 1997 general election campaign.
The election of Michael Foot as leader in 1980, and the leftist policies he espoused, such as unilateral nuclear disarmament, leaving the European Economic Community and NATO, closer governmental influence in the banking system, the creation of a national minimum wage and a ban on fox hunting led in 1981 to four former cabinet ministers from the right of the Labour Party (Shirley Williams, William Rodgers, Roy Jenkins and David Owen) forming the Social Democratic Party.

Zero-hour contract

zero hour contractzero-hours contractzero hour contracts
This does not prevent use of "zero hour contracts", where the worker is guaranteed no hours and is under no obligation to work.
In the United Kingdom, under the National Minimum Wage Act 1998, workers operating under a zero-hour contract on stand-by time, on-call time, and downtime must be paid the national minimum wage for hours worked.

HM Revenue and Customs

HMRCHer Majesty's Revenue and CustomsHM Revenue & Customs
The NMW is enforceable by HMRC (section 14), or by the worker making a contractual claim or through a "wrongful deduction" claim under Part II of the Employment Rights Act 1996.
Her Majesty's Revenue and Customs (HM Revenue and Customs or HMRC) is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support and the administration of other regulatory regimes including the national minimum wage.

Trade Boards Act 1909

Trade BoardsTrade Boards ActTrade Boards Bill
No national minimum wage existed prior to 1998, although there were a variety of systems of wage controls focused on specific industries under the Trade Boards Act 1909.

Low Pay Commission

The NMW rates are reviewed each year by the Low Pay Commission, which makes recommendations for change to the Government.
The LPC was established in July 1997 on a non-statutory basis before being confirmed in legislation by the National Minimum Wage Act 1998.

Name and shame

naming and shamingname-and-shamename-and-shame campaign
In October 2013, new rules to "name and shame" employers paying under the minimum wage were established, so that the names of most employers issued with a Notice of Underpayment are published.

Annabel's (Berkeley Square) Ltd v Revenue and Customs Comrs

Revenue and Customs Commissioners v Annabel’s (Berkeley Square) Ltd
Revenue and Customs Commissioners v Annabel's (Berkeley Square) Ltd [2009] EWCA Civ 361 is a UK labour law case regarding the treatment of tips under the National Minimum Wage Act 1998.

Conservative Party (UK)

ConservativeConservative PartyConservatives
The implementation of a minimum wage was opposed by the Conservative Party and supported by the Liberal Democrats.
Until 1999, Conservatives opposed the creation of a national minimum wage, as they believed it would cost jobs, and businesses would be reluctant to start business in the UK from fear of high labour costs.

United Kingdom labour law

UK labour lawBritish labour lawlabour law
This includes the right to a minimum wage of £8.21 for over 25-year-olds under the National Minimum Wage Act 1998.

Wages Councils Act 1945

The Wages Councils Act 1945 and subsequent acts applied sectoral minimum wages.

Living wage

fair wagebasic wagefair wages
The former Mayor of London Boris Johnson, a Conservative, has supported the London living wage since coming to office, ensuring that all City Hall employees and subcontracted workers earn at least £7.60 an hour and promoting the wage to employers across the city.
Wages Councils were abolished in 1993 and subsequently replaced with a single statutory national minimum wage by the National Minimum Wage Act 1998, which is still in force.

History of the minimum wage

minimum wage was introduced in Great Britain in 1909minimum wageminimum wage was introduced in the United Kingdom in 1909
Finally, with the return of Labour, the National Minimum Wage Act 1998 set a minimum of ₤3.60 per hour, with lower rates for younger workers.

Wage regulation

regulation of wagesstate regulation of wages and priceswage control
A recent example was the U.K. National Minimum Wage Act 1998.

United Kingdom

BritishUKBritain
National Minimum Wage Act 1998 creates a minimum wage across the United Kingdom.

Trade Union Reform and Employment Rights Act 1993

These were gradually dismantled, until the Trade Union Reform and Employment Rights Act 1993 abolished the 26 final wages councils that had protected around 2,500,000 low-paid workers.

Trade union

uniontrade unionistlabor union
Part of the reason for Labour's minimum wage policy was the decline of trade union membership over recent decades (weakening employees' bargaining power), as well as a recognition that the employees most vulnerable to low pay (especially in service industries) were rarely unionised in the first place.

Tertiary sector of the economy

tertiary sectorservice sectorservices
Part of the reason for Labour's minimum wage policy was the decline of trade union membership over recent decades (weakening employees' bargaining power), as well as a recognition that the employees most vulnerable to low pay (especially in service industries) were rarely unionised in the first place.

Neil Kinnock

Lord KinnockKinnockBaron Kinnock
Labour had returned to government in 1997 after eighteen years in opposition, and a minimum wage had been a party policy since as far back as 1986, under the leadership of Neil Kinnock.

Liberal Democrats (UK)

Liberal DemocratsLiberal DemocratLib Dem
The implementation of a minimum wage was opposed by the Conservative Party and supported by the Liberal Democrats.

George Osborne

OsborneGeorge Osborne MPChancellor of the Exchequer
In his 2015 budget, George Osborne announced that from 1 April 2016, a further rate known as the "National Living Wage" ("NLW") will apply to those aged 25 or over and will be at the rate of £7.20 per hour.

Employment agency

employment agencieslabour exchangejob placement
Those working through agencies are included (section 34), so that the agencies' charges must not reduce a worker's basic entitlement.