NMWM05130 - Entitlement to National Minimum Wage: superior employers

Relevant legislation

The legislation that applies to this page is as follows:

  • National Minimum Wage Act 1998, section 48

General

There are special rules that cover instances where an employer of a worker is himself in the employment of someone else and the worker is employed on the premises of that other person. In these circumstances the other person is termed the 鈥渟uperior employer鈥� and is deemed to be the joint employer of the worker together with the immediate employer. They are jointly liable for all National Minimum Wage purposes.

For example:

鈥楨mployer A鈥� is run by a single person and employs worker X. The single person operating as 鈥楨mployer A鈥� is themselves working for Company B.

If 鈥楨mployer A鈥� brings in worker X to undertake work for him on the premises of Company B, then Company B as well as 鈥楨mployer A鈥� are jointly responsible for ensuring that worker X is paid the National Minimum Wage. (This ensures that Company B cannot create a situation where workers working on their own premises are paid less than the National Minimum Wage by engaging them through its own workers).

Any investigation involving superior employers requires any interviews and correspondence (including notices of underpayment) to be addressed to both employers.