Q&As

Where a term-time worker is paid an annual salary over 12 equal instalments, are they a salaried hours worker and, if so, will the employer be in breach of the national minimum wage (NMW) legislation if it pays the worker less than the applicable NMW rate in respect of a particular month or months?

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Published by a LexisNexis Employment expert
Published on: 16 March 2022
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This Q&A is referring to the amendments to the National minimum wage Regulations 2015 (NMW Regs 2015), SI 2015/621, reg 21 made by the National Minimum Wage (Amendment) (No 2) Regulations 2020, SI 2020/339 with effect from 6 April 2020.

The effect of NMW Regs 2015, SI 2015/621, reg 21 is explained in some detail in the section of Practice Note: National minimum wage entitled Salaried hours work.

Conditions for salaried work

Under NMW Regs 2015, SI 2015/621, reg 21, salaried hours is work which is done under a worker's contract and meets all of the following conditions:

  1. •

    the worker is contractually entitled to be paid an annual salary (or an annual salary and one or both of a Performance Bonus and a salary Premium)

  2. •

    the worker

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Jurisdiction(s):
United Kingdom
Key definition:
National minimum wage definition
What does National minimum wage mean?

The national minimum wage that an employer is required to pay its employees.

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