THE National Minimum Wage (NMW) rules have now been in force for over two years (they were introduced on April 1, 1999).

The current rate is £3.70 (this will increase to £4.10 from October 1, 2001).

There is a lower rate of £3.20 (this will increase to £3.50 from October 1, 2001) for workers aged 18 to 21 or aged 22 or over and on accredited training.

There is no minimum for younger workers or those in training (for more details see the booklet mentioned in this article).

Generally, the NMW applies to all employees, and it is not possible for employees to opt out of it.

Initially it was thought that directors of private companies would also be caught by these rules.

However, company directors are not subject to the rules unless they have contracts which make them "workers".

Also, genuinely self-employed workers (ie those working on their own (not in a company) or in partnership with others) are exempt.

You can find out more about who is affected and other features of the NMW by reading "A detailed guide to the National Minimum Wage" published by the Department of Trade and Industry. This can be found on the Internet at: http://www2.dti.gov.uk/er/nmw/

gtmw.pdf

If you are being paid less than the minimum, then you can make a complaint on the National Minimum Wage Helpline on 0845 6000 678.

Complaints are passed to local Inland Revenue Inspectors who will follow them up with visits as appropriate.

The Inland Revenue is responsible for enforcing the National Minimum Wage, except in the agricultural sector where it is enforced by Agricultural Wages Inspectors.

The National Minimum Wage Act makes it a criminal offence to refuse or wilfully neglect to pay the national minimum wage; to fail to keep national minimum wage records, or to keep false records, and to obstruct an enforcement officer.

The maximum penalty is a fine of £5,000.

Unfortunately, it is not only complaints from employees which will lead to Inland Revenue inquiries.

The Inland Revenue is increasing the number of visits it makes to businesses to check on PAYE and National Insurance compliance.

Adherence to the National Minimum Wage rules will also be looked into on these visits. So, if you run a business, make sure you pay those affected by the NMW rules at least £3.70 per hour (going up to £4.10 in October).