NMWM05120 - Entitlement to National Minimum Wage: home workers

Relevant legislation

The legislation that applies to this page is as follows:

• National Minimum Wage Act 1998, section 35

General

A home worker is an individual who agrees to do work for a person’s business and the work is done somewhere which is not in the control or management of that person. The work is often done in the individual’s own home but it can be done elsewhere.

Home workers do not have to do all the work personally and can pass some of their work to someone else, such as family members. (In these circumstances the contract remains between the homeworker and the employer).

Home workers are usually entitled to the National Minimum Wage even if the supplier of the work tells them that they are self-employed. (Occasionally home workers may be genuinely self-employed but it is important to confirm their correct status (NMWM04020) for National Minimum Wage purposes.)

Many home workers are paid according to the amount of work they complete (see Rated output work system). In these circumstances their employer will either:

• pay the worker the National Minimum Wage for every hour they actually work; or
• pay a fair piece rate (NMWM03130) for every piece made or task performed.