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Personnel Today

Homeworkers to receive minimum wage equivalent

by Personnel Today 2 Mar 2004
by Personnel Today 2 Mar 2004

Homeworkers could be set to receive a pay boost after the Government said
their wages ought to be linked to the National Minimum Wage (NMW).

Employment relations minister Gerry Sutcliffe announced new wage regulations
that will see home- and piece-workers paid in relation to the current minimum
of £4.50 per hour.

More than 170,000 people could be set to benefit and must now be paid the
minimum wage for the number of hours it takes an average worker to complete an
agreed block of work.

Homeworkers are employed to perform roles such as packing or assembling
products and are currently outside NMW rules.

The measures, due to begin in October, will also force employers to give
much clearer information about rates of pay.

In April 2005, there will be a further increase with employers required to
pay homeworkers 120 per cent of the NMW.

www.dti.gov.uk

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