"Calling time on poverty wages for homecare workers?

The Care Act 2014 and the National Minimum Wage."

Dr LJB Hayes, Cardiff School of Law

In this presentation, I explain the importance of employer control in minimum wage determinations. In the context of the homecare industry, I argue that minimum wage rights may be put at risk by the framing of a new local authority duty to promote control by ‘the individual’ as set out in section 1 of the Care Act 2014.

The homecare industry has become notorious for non-compliance with basic labour standards and hundreds of thousands of homecare workers are paid less than the national minimum wage. However, recent decisions of the Employment Appeal Tribunal, more targeted enforcement by HMRC, and pronouncements by government ministers, suggest that finding ways to satisfy minimum wage law is an inescapable next step for the homecare industry.

The Care Act was debated in Parliament as a potential opportunity to address poor terms and conditions of employment in homecare work. However, the government claimed additional measures were unnecessary and employment issues would be addressed in forthcoming statutory guidance. From April 2015, the principle of well-being set out in section 1 of the Care Act imposes a new duty on local authorities to promote control by the individual over the provision of their care and the way care is provided. In this presentation I raise concerns that Care Act provisions provide statutory justification for further fragmenting and informalising the employment of homecare workers in ways which will frustrate access to basic employment protections, including entitlement to the National Minimum Wage.