Removal of the live-in worker exemption to minimum wage

MPs have passed legislation removing a minimum wage exemption which many have criticised as exploitative.

Contained within the National Minimum Wage Regulations 2015, this exemption applies to workers who live in the family home of their employer and who are treated as a member of the family in the context of accommodation, meals, tasks and leisure activities. It has been removed by the National Minimum Wage (Amendment) (No.2) Regulations 2023, meaning that such individuals are entitled to the minimum wage from 1 April 2024 when the new minimum wage will also come into force.

The ‘family and domestic worker’ exemption was intended to facilitate au pair placements. The role of au pair was typically seen as an opportunity for cultural exchange for young people from abroad and was associated with relatively light duties including housework and childcare. The exemption has more recently been found to be indirectly discriminatory, however, facilitating the development of exploitative employment practices and even abuse towards women, who make up the vast majority of live-in workers. Live-in workers are also uniquely vulnerable on account of their work being undertaken in private, which makes it challenging to identify who is truly treated as a ‘member of the family’ for the purpose of minimum wage determination. Additionally, many of these workers are migrants who are unaware they are being exploited as they have little experience of working in the UK.

This change is a welcome one and should provide much-needed protection for at-risk domestic workers. If you have any questions about your minimum wage entitlement, get in touch with us at the details below.