Stop your sole trader business
- 1 step
UK Act of Parliament
1998
United Kingdom
National Minimum Wage Act 1998
At a glance
Enforced by
What's here
4 compliance obligations, 9 practical guides across 4 topics · 12 journeys · 1 statutory instrument
Penalty landscape
2 of 4 obligations carry an unlimited fine. 2 have no criminal penalty — flagged in the list below.
Who this Act binds
Business-side actors with duties under this Act, ranked by how often they appear.
- Employer 2
- Director or Officer 1
Plus 1 non-business duty on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
Step-by-step journeys using this legislation
Walkthroughs that take you from a real business situation to compliance.
Transfer ownership of your business
- 1 step
Manage your employees
- 2 steps
Start a restaurant
- 1 step
Sell your business
- 1 step
Close your company
- 1 step
Relevant guidance
Practical guides for businesses affected by this Act, ordered by how closely they engage with it.
Direct — cites this Act
3 guidesSupporting — topic alignment
3 guidesMentioned in related content
3 guidesOther Acts binding the same actors
For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.
Employers also bound by 171 other Acts (top 5 shown)
- Provision and Use of Work Equipment Regulations 1998 1998 204 duties
- The Income Tax (Pay As You Earn) Regulations 2003 2003 201 duties
- Electricity at Work Regulations 1989 1989 55 duties
- Fire Safety (Scotland) Regulations 2006 2006 51 duties
- TULRCA 1992 1992 47 duties
Directors and Officers also bound by 224 other Acts (top 5 shown)
- Insolvency (England and Wales) Rules 2016 2016 75 duties
- Companies Act 2006 2006 63 duties
- Insolvency Act 1986 1986 46 duties
- CCBSA 2014 2014 22 duties
- CAICEA 2004 2004 18 duties
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Schedules
Browse 3 other Schedules — structural / supplementary
Non-compliance: worker entitled to additional remuneration.
- Pay additional remuneration for National Minimum Wage underpayments Employer
Enforcement of the right.
Other duties (1) — Crown / regulator
- Tribunal must determine complaints and award compensation for detriments Tribunal / Court
Offences.
Unlimited fine- Fail to pay the national minimum wage Employer
Offences by bodies corporate etc.
Unlimited fine- Personal liability for company minimum wage offences Director or Officer
Browse 72 other sections — procedural / definitional / commencement
Workers to be paid at least the national minimum wage.
Determination of hourly rate of remuneration.
Exclusion of, and modifications for, certain classes of person.
Power to add to the persons to whom section 3 applies.
The first regulations: referral to the Low Pay Commission.
Referral of matters to the Low Pay Commission at any time.
Referrals to, and reports of, the Low Pay Commission: supplementary.
The Low Pay Commission.
Duty of employers to keep records.
Worker’s right of access to records.
Failure of employer to allow access to records.
Extension of time limit to facilitate conciliation before institution of proceedings
Employer to provide worker with national minimum wage statement.
Appointment of officers.
Powers of officers.
Information obtained by officers.
Information obtained by agricultural wages officers.
Disclosure of information by officers
Enforcement in the case of special classes of worker.
Notices of underpayment: arrears
Notices of underpayment: financial penalty
Suspension of financial penalty
Notices of underpayment: appeals
Non-compliance with notice of underpayment: recovery of arrears
Non-compliance with notice of underpayment: recovery of penalty
Withdrawal of notice of underpayment
Replacement notice of underpayment
Effect of replacement notice of underpayment
Non-compliance: power of officer to sue on behalf of worker.
Financial penalty for non-compliance.
Appeals against penalty notices.
Withdrawal of enforcement notice
Replacement of enforcement notice
Effect of replacement on penalties where section 22A(3) not applied
Effect of replacement on appeals and civil proceedings where section 22A(3) not applied
Withdrawal of penalty notice
Replacement of penalty notice with notice imposing lower penalty
The right not to suffer detriment.
Right of employee not to be unfairly dismissed: Great Britain.
Right of employee not to be unfairly dismissed: Northern Ireland.
Tribunal hearings etc by chairman alone.
Reversal of burden of proof.
Appeals to the Employment Appeal Tribunal.
Conciliation.
Proceedings for offences.
Agency workers who are not otherwise “workers”.
Home workers who are not otherwise “workers”.
Crown employment.
Armed forces.
Cadet Force Adult Volunteers
House of Lords staff.
House of Commons staff.
Mariners.
Power to apply Act to individuals who are not otherwise “workers”.
Power to apply Act to offshore employment.
Share fishermen.
Voluntary workers.
Religious and other communities: resident workers.
Prisoners.
Persons discharging fines by unpaid work
Immigration: detained persons
Relationship of this Act and agricultural wages legislation.
Amendments relating to remuneration etc of agricultural workers.
Application of Act to superior employers.
Restrictions on contracting out.
Publicity.
Regulations and orders.
Expenses.
Repeals and revocations.
Meaning of “worker”, “employee” etc.
Interpretation.
Short title, commencement and extent.
Official guidance
Authoritative sources published by regulators or government explaining this legislation.
- Tips, gratuities, service charges and troncs (opens in a new tab) Publication
- ACAS: employing someone for the first time (opens in a new tab) from ACAS Detailed Guidance
- GOV.UK: employing someone to work in your home (opens in a new tab) Detailed Guidance
- Setting up PAYE (opens in a new tab) Detailed Guidance
- The Pensions Regulator guidance (opens in a new tab) Detailed Guidance
- Tips, gratuities, service charges and troncs (opens in a new tab) Publication
- National Minimum Wage: employer guidance (opens in a new tab) Publication
- Calculating the National Minimum Wage (opens in a new tab) Detailed Guidance
- Acas NMW guidance (opens in a new tab) Detailed Guidance
- NMW record keeping requirements (opens in a new tab) Detailed Guidance
- ... and 20 more
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
HMRC
PrimaryHM Revenue & Customs
Tax collection, customs duties, national insurance, tax credits, and enforcement of the National Minimum Wage. Regulates all UK businesses for tax compliance …
Unified labour market enforcement body for Great Britain. Takes over National Minimum Wage enforcement from HMRC, enforces statutory sick pay and holiday …
Connected legislation
1 statutory instrument
These instruments amend, apply, or refer to this Act. They may not all create direct business obligations.
Secondary legislation (1)
Explore more
Browse legislation
Find other UK business legislation with related guidance.
Regulators
Learn more about the bodies that enforce this legislation.