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Should the self-employed receive the national minimum wage?
We have in the past looked at great length at the importance of distinguishing between employees or workers on the one hand and the self-employed on the other.
One of the key differences between an employee / worker and a self-employed person is the level of risk taken with income. Employees/ workers are paid an agreed hourly rate that should be no less than the National Minimum Wage. Self-employed people, in theory, have more freedom to negotiate their own terms and take the risk of the gains/ losses that may be made from their work.
However, a study by the Resolution Foundation found that 49% of self-employed workers earned less than £310 a week last year and they are now calling for self-employed people to receive the National Minimum Wage and statutory maternity/ paternity pay. They believe that this is a necessary step to stop employers using purportedly self-employed contracts as a means of avoiding the National Minimum Wage.
Whilst we are looking at the National Minimum Wage, Jeremy Corbyn has said that all workers should receive the National Living Wage. This would apply to all those under 25, including 16 and 17 year olds who currently receive National Minimum Wage of around £4.05 per hour. The Director General of the British Chambers of Commerce has said that this move could price young people out of the workplace.
