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GaryC - no it does not, as such, but it does most certainly have a dampening effect on the market. Think for a minute - if you were an employer taking on cleaning staff, agricultural workers or junior hotel staff you do not have to think about what to pay them, you do not have to look at what your competitors pay, you just offer the min wage. What point as well, for such staff to move jobs as they know other hotels, farms etc will just pay the same.
As I say the market is the best determining factor of all for wages. You do need to do something about supply though, an excess of supply does push wages, down so something should be done about the availability of cheap foreign labour. As I said, one of the good reasons to get out of the EU.
As for 'zero hour' contracts. Once again we see how, perhaps well meaning, legislation that interferes with the market creates methods of getting round the rules to enable employers to get the flexibility they need to operate efficiently.