The National Minimum Wage Act, 2000, became law on 1 April 2000. The national minimum hourly rate of pay has been increased from £4.40 to £4.70 with effect from 1 July 2001. The Act applies to all employees except the following categories of employees who are excluded from its provisions: close relative of the employer such as a spouse, father, mother, son, daughter, brother and sister and apprentices within the meaning of the Industrial Training Act, 1967 and Labour Services Act, 1987. Other apprentices are covered.
Under the Act, an employee means a person of any age who has entered into, or works or has worked under, a contract of employment. A contract of employment means a contract of service or apprenticeship or any other contract whereby an individual agrees with another person to do or perform personally any work or service for that person or a third person, whether or not the third person is a party to the contract. An experienced adult worker must be paid an average hourly rate of pay that is not less than £4.70 per working hour in a week, a fortnight or no longer than a month, known as a pay reference period. A reduced rate of 70% of the national minimum hourly rate of pay applies to employees under age 18 and sub-minimum rates of the national minimum hourly rate of pay apply to employees entering employment for the first time on reaching the age of 18.