The National Minimum Wage Act 1998
The NMW was introduced in 1999 by the 1998 Act. The general right to receive the NMW is set out in section 1(1) of the 1998 Act, which provides that a person who qualifies for the NMW shall be remunerated by their employer in respect of their work in any pay reference period at a rate which is not less than the NMW. Section 1(2) of the 1998 Act provides that a worker above the age of the compulsory schooling qualifies for the NMW if they ordinarily work in the UK.
	Section 40 of the 1998 Act provides that, for the purposes of that Act, a person employed to work on board a ship registered in the UK under Part II of the Merchant Shipping Act 1995 ("UK flagged ships") shall be treated as ordinarily working in the UK unless their employment is wholly outside the UK or they are not ordinarily resident in the UK.
	Section 42 of the 1998 Act provides a power to apply that Act to "offshore employment". "Offshore employment" is defined as employment for the purpose of activities: in the territorial waters of the UK; connected with exploring the sea-bed or subsoil in the UK sector of the continental shelf; or connected with the exploration or exploitation of a cross-boundary petroleum field. This power is exercised by making an Order in Council and was used to create the National Minimum Wage (Offshore Employment) Order 1999 (S.I. 1999/1128) (the 1999 Order).
	Article 2 of the 1999 Order (amended by the National Minimum Wage (Offshore Employment) (Amendment) Order 2020 (S.I. 2020/779)) deems a person who works or ordinarily works in the territorial waters of the UK or (in connection with certain activities) in the UK sector of the continental shelf to be a person who works or ordinarily works in the UK for the purposes of the 1998 Act (and is therefore entitled to the NMW). The Order applies to individuals regardless of whether they are British subjects and to corporate bodies regardless of whether they are incorporated under UK law. However, the Order has no application to any individual employed for the purposes of activities on a ship exercising the right of innocent passage or the right of transit passage.