National Minimum Wage came into operation on 1st April 1999. The rate of payment depends on the age of the worker. It covers almost all workers over compulsory school age.
Employers can find difficulties when deciding how to calculate pay in unusual cases, and dealing with on-call and standby time.
Employers are required to keep records to show compliance. If underpaid, the employee may bring a claim in the Employment Tribunal. There are criminal sanctions for failure to comply.
Reputational damage is also a risk following the introduction of a naming scheme in respect of employers fraud to have breached the National Minimum Wage.