National Minimum Wage: Family member exemption

01 April 2015

Statutory guidance for calculating the National Minimum Wage has been updated with a new section detailing the conditions for when ‘work’ does not include any work done by a worker in relation to an employer’s family household.

The guidance states:

Family member exemption

Section 57 of the National Minimum Wage Act 2015 (previously section 2.2 of the National Minimum Wage Regulations 1999) sets out the conditions for when ‘work’ does not include any work done by a worker in relation to an employer’s family household. For this exemption to apply, certain requirements must be met.

The requirements must be all of the following:

  • the worker is a member of the employer’s family;
  • the worker resides in the family home of the employer;
  • the worker shares in the tasks and activities of the family

Or all of:

  • the worker resides in the family home of the worker’s employer;
  • the worker is not a member of that family, but is treated as such (in regards to the provision of living accommodation, meals and the sharing of tasks and leisure activities)
  • the worker is neither liable to any deduction, nor to make any payment to the employer, or any other person, as respects the provision of the living accommodation or meals;
  • if the work had been done by a member of the employer’s family, it would not be treated as work or as performed

The Modern Slavery Act has recently brought through new changes to how immigration rules apply to the National Minimum Wage and the family exemption. These changes will come into force on 6 April 2015.

An Immigration Officer (when granting applications to leave or enter) will need to be satisfied that the employer will pay at least the NMW. Employers will have to commit to this in the relevant application forms and provide evidence.

The employer should confirm to Home Office officials that the worker does not fall under section 2.2 of the National Minimum Wage Regulations 1999 (or section 57 of the National Minimum Wage Regulations 2015 once in force on 6 April 2015) and therefore would be exempt from paying the NMW.

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