Domestics and the minimum wage

It is widely thought that the National Minimum Wage (NMW) applies to all workers, but there is a specific exemption from the NMW regulations when a domestic worker is treated as a member of their employer’s family and resides with the employer’s family in the family home. In these circumstances, the NMW does not apply.

A recent decision of the Employment Appeal Tribunal (EAT) has confirmed that for the exemption to apply, treatment as a family member must be genuine, with provision of accommodation and meals (without any liability to pay. The sharing of tasks and leisure activities is of particular relevance.

The EAT stressed that the domestic worker’s position has to be looked at ‘holistically’, and that where an employer exploits a worker’s position as a migrant worker – for example by paying them less than the agreed amount over a substantial period – this would run counter to treating them as a family member.

If you are concerned about the application of the NMW legislation in your business or household, contact us for advice.