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Relevant legislation

»Ê¹ÚÌåÓýapp legislation that applies to this page is as follows:

• National Minimum Wage Regulations 2015, regulation 41

For pay reference periods starting on or after 1 October 2004 output work is classed as rated output work for any pay reference period when:

• the worker’s contract does not set any normal, minimum or maximum working hours to do the work, and
• the employer does not determine or control the hours worked by the worker and
• the employer has established a mean hourly output rate for the piece produced or task performed, and
• the worker has been given a notice (NMWM07070) which satisfies the requirements of the regulations.

Rated output workers are paid wholly by reference to the number of pieces made or tasks performed. »Ê¹ÚÌåÓýappy are not paid an hourly rate. However, they are still entitled to be paid the National Minimum Wage, which is expressed as an hourly rate. »Ê¹ÚÌåÓýapp rated output work system links the output of a worker to the National Minimum Wage by means of the mean hourly output rate (NMWM03150). This is used to determine a “fairâ€� piece rate (NMWM03130) for each piece produced or task performed. If the employer is actually paying at least the “fairâ€� piece rate for each item then the worker is receiving the National Minimum Wage.

Prior to the 1 October 2004, the “fair estimate agreement� system was used to determine if an output worker was receiving the National Minimum Wage (NMWM07090).