The document discusses UK labor laws regarding minimum wage and maximum working hours: - The Minimum Wage Act establishes statutory minimum wage rates for most employees based on age, with exemptions for some groups. Businesses must pay at least these rates. - The Working Time Regulations implement EU directives setting a maximum 48-hour workweek on average, minimum daily and weekly rest periods, and at least 28 days of paid annual leave per year. Employers can have employees opt out of the 48-hour limit in writing. - Violations of maximum hours or leave requirements can be addressed through criminal sanctions or employment tribunals, while minimum wage can only be enforced via tribunals. Advantages and disadvantages of

1. 2.7 The Minimum Wage Act
(1998)
Natasha Verma
IFP

2. The Minimum Wage Act (1999)
• Statutory entitlement to a minimum wage for
most employees.
• Employees not entitled to a minimum wage
under this act are the self employed, volunteers,
students working as part of a under graduate or
post graduate course and workers on certain
government training schemes.
• http://www.youtube.com/watch?v=tnl6VZ6Mj9Q

3. What does it mean to a business?
• Has to pay the following minimum rates of
pay to employees depending on their
ages.
• Currently three aged-based national
minimum wage rates and an apprentice
rate, which are usually updated in October
each year.
• http://www.youtube.com/watch?v=mM-m-
goaGSg

4. Minimum Wage Rates 2013
Age Rate
21 years & over
18-20 years
16-18 years
apprentices aged under 19
for apprentices aged 19 and over, but in
the first year of their apprenticeship
Apprentices aged 19 or over who have
completed one year of their apprenticeship are
entitled to receive the national minimum wage
rate applicable to their age.
Minimum wage
age related

5. EU Directives
• EU directives lay down certain end results
that must be achieved in every Member
State.
• National authorities have to adapt their
laws to meet these goals, but are free to
decide how to do so.
• Working Time Directive made into British
Law through The Working Time
Regulations (1998)

6. Working Time Regulations (1998)
• Maximum weekly working time – An employee
has a statutory right not to be compelled to work
in excess of an average of 48 hours in a working
week.
• Employers can opt out of this by obtaining the
employees agreement in writing first
• If an employee is “on call” and are required to be
at their workplace whilst “on call”, then this is
part of their “working time”
• Cannot be enforced at an employment tribunal,
can only be addressed by criminal sanction

7. Daily Rest and Weekly Rest
• An employee has the right to daily rest and
weekly rest breaks
• Entitled to a rest of 11 consecutive hours in each
24 hours he works for his employer
• Entitled to an uninterrupted rest period of 24
hours in each 7 day period during which he
works for his employer
• Can be enforced by raising a complaint in an
employment tribunal

8. Annual leave
• Employees have the right to a minimum of
28 days paid annual leave in a holiday
year.
• Enforceable by complaining to an
employment tribunal.

9. Effects of Working Time
Regulations
• What are the advantages and
disadvantages of the Working Time
Directives?
• Watch the following videos and discuss.
• http://www.youtube.com/watch?
v=ykH1u1mE6as
• http://www.youtube.com/watch?v=mC5-
HPqX5fU

10. Effects of Working Time
Regulations
• What are the advantages and
disadvantages of the Working Time
Directives?
• Watch the following videos and discuss.
• http://www.youtube.com/watch?
v=ykH1u1mE6as
• http://www.youtube.com/watch?v=mC5-
HPqX5fU