NMWM05170 | Entitlement to National Minimum Wage: friends and neighbours

The National Minimum Wage does not need to be paid when jobs are done under informal arrangements between friends and neighbours. This is because such arrangements will not normally have the necessary intention to create legal relations between the parties so the person doing the task will not have the status of a worker (NMWM05020) even if a token payment or gift is provided in return.

However, if a contract is established between the parties (NMWM04060) then this indicates the existence of an employer/worker relationship (NMWM04080) and National Minimum Wage may be due.

See also: Family Members (NMWM05160) and Living as Part of the Family (NMWM05180).