Most employers are fully aware of the national minimum wage (NMW) legislation – but are you familiar with the exceptions to the normal rules? Here’s a rundown of all the information you need, to ensure that you calculate employee wages correctly.
The National Minimum Wage Act 2000 introduced a statutory minimum wage, which was previously set at €9.25 per hour until an increase to €9.55 per hour came into effect as of the 1st January 2018. The Act applies to all employees, except for certain apprentices and close relatives.
It’s worth noting that if an employee requests a statement of their average hourly rate of pay and it shows that they’ve been underpaid, tribunals may be able to award compensation right back to the beginning of the employment period.
NMW exceptions
Here’s a comprehensive breakdown of exceptions to be aware of in regard to the minimum wage:
An employee under 18 years of age is entitled to an hourly rate of at least 70% of the NMW. For those entering employment for the first time after reaching the age of 18 - or, if already in employment, on reaching that age - must be paid at least 80% of the NMW in the first year and 90% of the NMW in the second year.
Once two years have elapsed since the first of date employment over the age of 18, a worker cannot be paid at the lower rates again – even if they change or leave employment for a period of time.
However, if the change of employment occurs within the two year period, the new employer can pay the worker at the appropriate lower rate for the remaining, unexpired part of the two year period.
Training Rates
Although the NMW applies to all adult workers, there are three different training rates that are applicable where an employee over the age of 18 is undergoing a course of study or training that meets specified statutory requirements.
An employer cannot pay a worker the trainee rates for a second time, even if the worker changes jobs – unless the worker undergoes a course of study or training that is different in purpose or content from the previous study or training.
At least 10% of this training is required to be off-site or away from ordinary employee duties, and there must also be an assessment and certification procedure - or written confirmation - on completion of the course.
If you have any questions in relation to the National Minimum Wage, please contact our expert employment law advisors on the 24 Hour Advice Service on 0818 923 923