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Homeworkers may see closure of minimum wage loophole

first_img Previous Article Next Article Comments are closed. Homeworkers may see closure of minimum wage loopholeOn 17 Feb 2003 in Personnel Today Related posts:No related photos. TheGovernment has published proposals to close a loophole in the law which allowsemployers to avoid paying homeworkers the national minimum wage.Undercurrent regulations, employers can estimate the time an average worker takes tocomplete the task.EmploymentRelations Minister Alan Johnson said: “These people deserve fair pay for afair day’s work. Homeworkers and their employers have told us that the rules inthis area have not been working well and we are determined to help them. “Thenational minimum wage is one of this Government’s finest achievements, but weare not complacent when it comes to enforcing the rules and when necessary, wewill tighten them up.”DTIproposals in its consultation paper could lead to the minimum wage for allhours worked or a “fair piece rate”. Thereare more than 700,000 homeworkers in the UK. Directorof the National Group of Homeworkers, Linda Devereux, said: “We welcomeany changes that make it easier for homeworkers to work out whether their piecerate equates to the national minimum wage. The new rules should simplify theprocess and make it more difficult for employers to exploit homeworkers, whocan, at the moment, legally pay homeworkers only four-fifths of the minimumwage.”By Paul Nelsonlast_img read more