From October 2004 all employers must pay at least:-

• £4.85 per hour to Adult Workers
• £4.10 per hour to 18-21 year olds and new workers who are being trained.

From October 2005 the new minimum wage rates will be as follows:-

• £5.35 per hour to Adult Workers
• £4.45 per hour to 18-21 year olds and new workers who are being trained.

Charities and Voluntary organisations need to be aware of the framework and application of this act.

For further information contact the national minimum wage help line on 0845 600 0678.

A criminal offence is committed:-

• by an employer who refuses or wilfully neglects to pay the National Minimum Wage
• by a person who fails to keep or preserve proper records or keeps or falsifies records

Please note that an Honarium can by definition only be given in exceptional circumstances and certainly not annually. It will then become a salary and would have to be at least at the minimum wage rate.

However you may pay expenses that are:-

1. actually incurred in the performances of his/her duties
2. reasonably estimated as likely to be or have been so incurred.

Living accommodation can count towards the National Minimum Wage but only up to a daily rate of £3.25 for each day worked or 57p for every hour worked for hourly paid workers. The Figure that must be used for the NMW is whichever is the lower of the two. However irrespective of the method used, the amount which can count towards the NMW cannot exceed £22.75 per week. This will affect those halls that provide accommodation to caretakers in lieu of pay. This is a complicated act with teeth. We would advise all charities that have volunteers or paid workers to take advice on the matter from a specialist solicitor if they feel they may have a problem.

Surrey Community Action do have a very informative information sheets detailing all aspects of Employment for Village Hall Management Committees with details of Contract of Employment Insurance, Health and Safety, Part Time and Casual Staff and Employed or Self Employed. For further information please click here.