According to HM Revenue & Customs, "Almost everyone who legally works in the UK must get a minimum level of pay. This is called the national minimum wage. You can be paid more than the national minimum wage but you must not be paid less."

That all seems pretty straightforward, but there are some intricacies you need to be aware of to ensure you're earning what you're due.

A brief history
Minimum wages were originally set by The Trade Boards Act of 1909 and the system was extended considerably after the Second World War when Trades Boards became Wages Councils.

These Wages Councils set minimum wage standards in many sectors of the economy, including the service sector, as well as manufacturing.

The government undertook several amendments to change the system and make it fairer which led to the Wages Act in 1986 that reformed the Wages Councils and abolished the power to create new ones.

A National Minimum Wage (NMW) was introduced for the first time in April 1999 and this rate was set following recommendations by the Low Pay Commission (LPC), an independent advisory body the government appointed in July 1997.

The LPC's permanent status was later confirmed and it continues to make recommendations to government on the NMW, which has been updated in October every year since 2000.

How if affects you
Working for very little money is no joke and the National Minimum Wage Act was passed to prevent the exploitation of workers at the lower end of the pay scale.

As a result almost everyone who legally works in the UK must get a minimum level of pay and any employer refusing to meet this level is breaking the law

The law was designed to cover those traditionally poorly paid industry sectors, and those groups within in it who are most likely to be exploited, for example:

• Workers over compulsory school age
• Overseas workers
• Agency workers
• Homeworkers
• Agricultural workers
• Government employees

The minimum wage offers protection across the board but there are exceptions, namely:

• The self-employed
• Holders of Office (eg Mayors)
• The Armed Forces
• Voluntary workers
• Children below school leaving age

National minimum wage levels
There are three levels of minimum wage, and the rates from 1st October 2009 are:

• £5.80 per hour for workers aged 22 years and older.
• A development rate of £4.83 per hour for workers aged 18-21 inclusive.
• £3.57 per hour for all workers under the age of 18, who are no longer of compulsory school age

It's worth remembering that in England and Wales a person is no longer of compulsory school age after the last Friday of June of the school year in which their 16th birthday occurs. 

How some employers try to get around it
Ignorance of the Law is no excuse, but sadly, in the case of the national minimum wage, ignorance is one of the bad employer's first resorts.

One excuse is to claim there is no employment contract and that they are only employing someone as a favour. Another highly dubious practice is to coerce workers into working a 'voluntary' period in addition to their paid hours and thus bringing down their overall pay per hours worked.

Some think that their company is too small to be affected by the minimum wage and therefore under cut it. The hospitality industry is notorious for using use gratuity tips to bump up the wages of staff above the required minimum levels.

All of the above are unacceptable and illegal.

It's worth remembering however, that the majority of employers are honest and scrupulous, so instances of non-payment are very much in the minority.

Getting what you deserve
As an employee you have the right to challenge your employer on whether you are being paid the national minimum.

Before making a complaint, always try to make sure you have calculated your pay correctly.

If you still think you are not getting the National Minimum Wage (NMW), talk to your employer and make sure it isn't simply a mistake.

You should take this up directly, but if you feel the matter is not being addressed then your next step is to take the matter to HM Revenue and Customs (HMRC).

The role of HMRC is to enforce the national minimum wage and it has the power of Government legislation behind it.

The HMRC responds to complaints made about employers by employees suspected of not paying the minimum wage. It also frequently visits random samples of employers to check that they meet their obligations under the National Minimum Wage Act.