National Minimum Wage Act 1998

Valid from 01/11/1998

8 The Low Pay Commission.U.K.

(1)Subject to the following provisions of this section, the body which is to be regarded for the purposes of this Act as being the Low Pay Commission is the non-statutory Low Pay Commission.

(2)In this Act “the non-statutory Low Pay Commission” means the unincorporated body of persons known as “the Low Pay Commission” which was established by the Secretary of State after 1st May 1997 and before the passing of this Act for the purpose of making recommendations relating to the establishment, application and operation of a national minimum wage.

(3)The referral by the Secretary of State to the non-statutory Low Pay Commission at any time before the coming into force of this Act of matters (however described) corresponding to those specified in subsection (2) of section 5 above shall be treated as the referral required by subsection (1) of that section unless the Secretary of State otherwise determines.

(4)The referral by the Secretary of State to the non-statutory Low Pay Commission at any time before or after the coming into force of this Act, but before the appointment of the body mentioned in subsection (9) below, of matters other than those mentioned in subsection (3) above shall be treated as a referral under section 6(1) above unless the Secretary of State otherwise determines.

(5)The report of the non-statutory Low Pay Commission (whether made before or after the coming into force of this Act) to the Prime Minister and the Secretary of State containing the Commission’s recommendations about—

(a)the matters which are to be treated by virtue of subsection (3) above as referred under section 5(1) above, or

(b)the matters which are to be treated by virtue of subsection (4) above as referred under section 6(1) above,

shall be treated as the report of the Low Pay Commission under section 5(3) or 6(2) above, as the case may be, on the referral in question unless the Secretary of State, whether before or after the making of the report, makes a determination under subsection (3) or (4) above in relation to the referral.

(6)If, in the case of the matters described in subsection (5)(a) above or any particular matters such as are described in subsection (5)(b) above, the Secretary of State has, before the coming into force of this Act,—

(a)requested the non-statutory Low Pay Commission to make their report within a specified time, or

(b)having made such a request, extended the time for making the report,

the request shall be treated as a requirement imposed under subsection (2) of section 7 above and any such extension shall be treated as an extension under subsection (3) of that section.

(7)Accordingly, if—

(a)the Secretary of State has not made a determination under subsection (3) above, and

(b)the non-statutory Low Pay Commission fail to make the report required by section 5(3) above within the time allowed under this Act,

section 5(5) above applies.

(8)The non-statutory Low Pay Commission shall not be regarded as the body which is the Low Pay Commission for the purposes of this Act in the case of any referral under section 5(1) or 6(1) above which is made after—

(a)the non-statutory Low Pay Commission have made their report under section 5(3) above; or

(b)the time allowed under this Act to the non-statutory Low Pay Commission for making that report has expired without the report having been made; or

(c)the Secretary of State has made the determination under subsection (3) above.

(9)The Secretary of State may at any time appoint a body, to be known as “the Low Pay Commission”, to discharge the functions conferred or imposed on the Low Pay Commission under this Act.

(10)Schedule 1 to this Act shall have effect with respect to the constitution and proceedings of the body appointed under subsection (9) above.

(11)Where the Secretary of State exercises the power conferred by subsection (9) above, the body which is to be regarded for the purposes of this Act as being the Low Pay Commission as respects the referral of any matter to the Low Pay Commission by the Secretary of State after the exercise of the power is the body appointed under that subsection.

(12)If the Secretary of State makes the determination under subsection (3) above, the power conferred by subsection (9) above must be exercised and the referral required by section 5(1) above must be made to the body appointed under subsection (9) above.

(13)If the Secretary of State makes a determination under subsection (3) or (4) above—

(a)notice of the determination shall be given to the non-statutory Low Pay Commission; and

(b)a copy of the notice shall be laid before each House of Parliament.

(14)No determination shall be made under subsection (3) or (4) above more than twelve months after the passing of this Act.