Entitlement to national minimum wage: workers participating in a scheme after being homeless or residing in a hostel for homeless persons
The legislation that applies to this page is as follows:
For pay reference periods commencing
* on or after 6 April 2015; National Minimum Wage Regulations 2015, regulation 55 * before 6 April 2015; National Minimum Wage Regulations 1999, regulations 12(10), 12(11) & 12(12)
A worker who is provided with shelter and other benefits (including monetary benefits) as a result of participating in a scheme does not qualify for the national minimum wage in respect of work performed for his employer under such a scheme, providing that both of the following conditions are met;
 Immediately before joining the scheme;
- the worker was either homeless or residing in a hostel for homeless persons, and
the worker was either:
- In receipt of (or entitled to) income support or income based jobseeker’s allowance, or
- Was not entitled to receive either of those benefits only because he was not habitually resident in the UK.
 The scheme itself satisfies all the following criteria;
it has arrangements in place to prevent the scheme operators or any other person profiting from the provision of the scheme unless:
- any profit is only applied to run the scheme or similar schemes (run under these same arrangements), or
- the scheme is a charity whose purpose is wholly or partly to alleviate poverty.
- all the participants qualify under  above;
- the person operating the scheme must provide the accommodation (or make it available under arrangements between themselves and another person);
- the work done under the scheme must be both provided by, and performed for, the person operating the scheme.